Market Update
With the US and UK out for holidays, volumes very light in TY futures (~200k). Big move in Greek debt, yields 15-25bps lower to record lows. Snap elections were called after Tsipras’s Syriza party suffered huge losses in the EU Parliamentary elections. GOCs little changed ahead of BOC rate decision Wednesday and Q1 GDP Friday. We do not expect a change in the BOC’s cautious tone given weakness in trade and oil prices, markets are pricing in 20% odds of a rate cut by year end vs 28% after the last meeting on April 24th. The intervening period has seen strong employment data for April (jobs up a record 106k) as well as the lifting of tariffs on Cdn steel and aluminum.
News headlines
Europe Stocks Climb With Bonds After EU Election: Markets Wrap (Bloomberg) Stocks rose in Europe on Monday after trading mixed in Asia as investors mulled three weeks of global declines amid escalating U.S.-China trade tensions. Government bonds across the European Union advanced after mainstream parties held their ground against populists in regional elections.
European stocks gain on EU election relief and auto shares surge (Reuters) European shares rose on Monday as investors snapped up automaker stocks following confirmation of merger talks between Fiat Chrysler and Renault, and after European parliamentary elections saw pro-Europe parties cling to a majority.
TSX futures inch higher as gold prices rise (Reuters) Stock futures for Canada’s main stock index inched higher on Monday, as gold hit a more than one-week peak on concerns over the U.S.-China trade dispute.
Oil Mostly Steady Amid Trump Comments on China Trade Deal, Iran (Bloomberg) U.S. oil held gains above $58 a barrel after American explorers reduced drilling activity to the lowest level in more than a year, even as President Donald Trump said Washington isn’t ready to make a trade deal with China.
Trump presses Japan over trade gap, expects ‘good things’ from North Korea (Reuters) U.S. President Donald Trump pressed Japanese Prime Minister Shinzo Abe on Monday to even out a trade imbalance with the United States and said he was happy with how things were going with North Korea but was in no rush to reach a peace deal.
China says disputes with U.S. should be resolved via talks (Reuters) China’s Foreign Ministry said on Monday that any disputes between China and the United States should be resolved through talks.
India’s economy big worry for Modi, needs stimulus: FICCI (Reuters) India’s slowing economic growth is of serious concern and the country needs to urgently cut tax and interest rates to revive the economy, a top industrial body said on Monday ahead of the inauguration of Prime Minister Narendra Modi’s second term.
Overnight markets
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.559% | 2 Year | 2.164% |
| 5 Year | 1.496% | 5 Year | 2.121% |
| 10 Year | 1.609% | 10 Year | 2.32% |
| 30 Year | 1.862% | 30 Year | 2.751% |
US Economic Data
There is no US economic data for today.
Canadian Economic Data
| 10:00 AM | Bloomberg Nanos Confidence, May 24 Survey — Prior 55.1 |
Disclosure and Disclaimer
The following sources of information have been, or may have been, used partially or in their entirety to compile the herein provided CTI Capital Securities Inc. (“CTI Capital”) ‘Morning Comments.’ CTI Capital believes these sources to be generally reliable, however, as said sources are varied and from third parties, CTI Capital cannot guarantee the accuracy or completeness of said information: Canadian Press (CP); Bloomberg News (BN); Wall Street Journal (WSJ); Stone & McCarthy Research Associates (SMRA); New York Times (NYT); Financial Times (FT); Market News International (MNI); Globe and Mail; Associated Press (AP); CNW Group (CNW); Reuters; Business News Network (BNN); Market Watch; and others.
Ivan Greenstein, Stephan Buu, Émile Bordeleau
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilieres Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230