cti2015header-morning comments web

Market update

US tsys opening higher, curve 1bp flatter, US 10Y 2.203 (-3bps). US stock futures slightly lower, USD index higher, crude ~2.0% lower close to $42 support as China stocks fell 5.5% o/n amid brokerage investigation. US tsys lagging 10Y bunds ~6bps on the week, despite higher euro area sentiment (see above) & sizeable 0.13yr extension in the Barclays Tsy Index vs 0.03yrs for Europe.  GOCs are higher, spds ~1bp wider vs tsys, provis opening unch supply unlikely.

News headlines

  • China shares fall most since midyear rout (FT) China’s main stock index suffered its worst day in three months on Friday as investigations into securities brokerages added to worries over the restart of initial public offerings next week.
  • Fangs and Nifty Nine power US equities (FT) As Americans emerge from Thanksgiving they should be thankful for a small and select group of companies that have kept their stock market afloat.
  • Big Banks Cut Back on Loans to Small Business (WSJ) The biggest banks in the U.S. are making far fewer loans to small businesses than they did a decade ago, ceding market share to alternative lenders that charge significantly higher rates.

Overnight markets

  • Overview: US 10yr note futures are up +0.14% at 127-05, S&P 500 futures are up +0.02% at 2088.75, Crude oil futures are down -2.09% at 42.14$, Gold futures are down -1.57% at $1053, DXY is up +0.35% at 100.13.

US Economic Data

  • There is no major economic data today.

Canadian Economic Data

  • There is no major economic data 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, Pierre-Olivier Boulanger
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

Tel : (514)-861-0240
Fax: (514)-861-3230