Market Update

US tsys trading lower, yields2-3bps higher, 10Y 1.72% (+3bps), on avg volume in TY futures (~330k).  August Personal Income/Spending and PCE on deck, U Michigan sentiment at 10:00am.  Bunds/gilts paring gains despite Euro area confidence dropping to six year low and BOE Saunders saying rate cuts may still be needed with Brexit deal. GOCs lower in line with tsys, 10s30s 2bps wider yest after long HQ 55 deal, BOC switch operation.

News headlines

U.S. Stock-Index Futures Climb, Treasuries Slip: Markets Wrap (Bloomberg) U.S. futures advanced with stocks in Europe while Treasuries edged lower before a key inflation report in the world’s largest economy. The pound weakened for a third day.

Shares rise as trade optimism muffles impeachment noise (Reuters) World shares erased losses on Friday, buoyed by a wave of optimism that U.S.-China trade tensions might be easing as markets largely brushed off concerns about possible impeachment moves against U.S. President Donald Trump.

Futures tick higher on trade hopes (Reuters) Futures for Canada’s main stock index edged up on Friday, as U.S.-China trade optimism boosted investor sentiment.

Oil Slides After Report of Partial Saudi Cease-Fire in Yemen (Bloomberg) Oil fell after a report that Saudi Arabia has moved to impose a partial cease-fire in Yemen, bringing hope of easing tensions in the Middle East.

China’s top diplomat says Beijing willing to buy more U.S. products (Reuters) China’s top diplomat said on Thursday that China was willing to buy more U.S. products, and said trade talks would yield results if both sides “take more enthusiastic measures” to show goodwill and reduce “pessimistic language” in their trade dispute.

In counterweight to China, EU, Japan sign deal to link Asia (Reuters) The European Union and Japan signed an infrastructure deal on Friday to coordinate transport, energy and digital projects linking Europe and Asia, seeking an alternative to Chinese largesse that has raised suspicion in Brussels and Tokyo.

Oil shipping rates soar as U.S. supertanker sanctions rattle crude trade (Reuters) Key oil freight rates from the Middle East to Asia rocketed as much as 28% on Friday in a global oil shipping market spooked by United States sanctions on units of Chinese giant COSCO for alleged involvement in ferrying crude out of Iran.

Market Overview: US 10yr note futures are down -0.228% at 129-32, S&P 500 futures are up 0.24% at 2987.75, Crude oil futures are down -0.87% at $55.92, Gold futures are down -0.96% at $1500.6, DXY is up 0.04% at 99.17, CAD/USD is down -0.08% at 0.7544.

Cda BenchmarksYieldTsy BenchmarksYield
2 Year1.59%2 Year1.678%
5 Year1.418%5 Year1.606%
10 Year1.381%10 Year1.718%
30 Year1.561%30 Year2.164%

US Economic Data

08:30 AMPersonal Income, Aug  Survey: 0.40%  Prior: 0.10%
    Personal Spending, Aug  Survey: 0.30%  Prior: 0.60%
    PCE Deflator MoM, Aug  Survey: 0.10%  Prior: 0.20%
    PCE Deflator YoY, Aug  Survey: 1.40%  Prior: 1.40%
    PCE Core Deflator MoM, Aug  Survey: 0.20%  Prior: 0.20%
    PCE Core Deflator YoY, Aug  Survey: 1.80%  Prior: 1.60%
    Durable Goods Orders, Aug P  Survey: -1.10%  Prior: 2.00%
    Durables Ex Transportation, Aug P  Survey: 0.20%  Prior: -0.40%
    Cap Goods Orders Nondef Ex Air, Aug P  Survey: 0.00%  Prior: 0.20%
    Cap Goods Ship Nondef Ex Air, Aug P  Survey: 0.30%  Prior: -0.60%
10:00 AMU. of Mich. Sentiment, Sep F  Survey: 92.1  Prior: 92.0

Canadian Economic Data

There is no Canadian economic data for today.

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