Market Update
Tsys sharply higher, yields 5-6bps lower, US 10Y 2.355 (-5.7bps), follow thru bid from Friday’s healthcare defeat amid doubts Trump will be able to implement his pro growth agenda. US stock futures lower, DXY index -0.67%, crude below $50 on . Core Euro bonds higher, yields 2-3bps lower in UK & Germany – German IFO strong pointing to upside risk in Q2 Eurozone GDP. No data in US & Cda, more Fed speakers as well as $26bln 2Y auction. GOCs higher, outperforming tsys by 0.5bps with the 10Y 1.58% (-5.7bps). Provis ended 1bp wider on Friday on no supply, starting the day unch.
News headlines
U.S. stock futures hit six-week low on failed healthcare bill (Reuters) U.S. stock index futures hit six-week lows on Monday after President Donald Trump failed to push through his healthcare bill, raising concerns about his ability to deliver on his economic agenda. A Congress controlled by Trump’s Republican party on Friday pulled a bill to overhaul the Affordable Care Act or Obamacare, in a stunning setback for the President’s first major legislative move since taking office.
Dollar hits lowest since November as Trump trade deflates (Reuters) The dollar slid to a four-month low against a basket of currencies on Monday as investors weighed the prospects of a U.S. fiscal spending boost under President Donald Trump after his failure to push through a key healthcare reform bill.
Russia Needs Data on Oil Supply, Markets to Decide on More Cuts (Bloomberg) Russia isn’t ready to support a possible extension of oil-supply cuts into the second half of the year, even as more crude producers acknowledge they will probably need to do so to achieve their goals of balancing the market and firming up prices.
On the up: German business morale brightest in nearly six years (Reuters) German business morale hit its highest level in nearly six years in March, suggesting company executives in Europe’s largest economy are brushing off concerns about the threat of rising protectionism and Germany’s own election issues.
Trump and Trudeau’s Infrastructure Seen Too Tiny for Big Funds (Bloomberg) U.S. and Canadian plans to spend more than $1.1 trillion on infrastructure are unlikely to be lucrative enough to attract big global investors, according to one of the world’s biggest funds in the sector.
Dominion Diamond to explore strategic options, including sale (TheGlobeandMail) Canadian diamond miner Dominion Diamond Corp., which is being pursued by Washington Cos and Stornoway Diamond Corp, said it would explore strategic alternatives, including a sale.
Overnight markets
Overview: US 10yr note futures are up 0.213% at 124-26, S&P 500 futures are down -0.9% at 2323.75, Crude oil futures are down -0.98% at $47.5, Gold futures are up 0.74% at $1261, DXY is down -0.69% at 98.939, CAD/USD is down -0.2% at 0.749.
US Economic Data
| 10:30 AM | Dallas Fed Manufacturing Activity, Mar, est. 22.0 (prior 24.5) |
Canadian Economic Data
| 10:00 AM | Bloomberg Nanos Confidence Index, (prior 59.2) |
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, David Leclair-Legault
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230