Commentaires

We will be back on Monday January 8th. 

News headlines 

Congress Averts a Shutdown But Now Faces a Messy Start to 2018 (Bloomberg) The Republican-controlled Congress on Thursday night managed the bare minimum task of keeping the government open, yet made little progress on a medley of divisive fiscal and social issues it will now be forced to confront in January.

Catalan Separatists Win Majority of Seats, Not Votes: Chart (Bloomberg) It’s all about seats, not votes. Parties supporting Catalan independence from Spain won back control of the regional assembly, taking 70 of 135 seats after a record 82 percent turnout. Still, they got just 48 percent of votes, falling short of the majority that would boost their claims to a democratic mandate to break away from Spain.

Bitcoin Fights Back From $13,000 as Selloff Enters Fourth Day (Bloomberg) The world’s largest cryptocurrency sank as much as 21 percent, briefly trading below $13,000, before recovering to near $14,000 late in the European morning. Other cryptocurrencies also tumbled, with bitcoin cash crashing 31 percent and ethereum losing 20 percent over the past 24 hours, according to coinmarketcap.com

Catalan Vote Weighs on Stocks, Euro; Dollar Steady: Markets Wrap (Bloomberg) Stocks in Europe struggled for traction and the euro declined after Catalan separatists won a regional election in Spain, news which offset solid growth data from two of the region’s big economies. U.S. equity futures and the dollar nudged higher, while Treasuries were steady.

Oil Set for First Weekly Gain Since November as Stockpiles Drop (Bloomberg) Front-month futures slid 0.5 percent in New York, trimming the weekly gain to 1.4 percent. Crude supplies slid last week to 436.5 million, the lowest level since October 2015, according to U.S. government data Wednesday. Output expanded at the smallest rate since starting a nine-week gain in mid-October. The North Sea’s Forties Pipeline System is set to return to normal flows early next year, according to a statement from operator Ineos Group

In Silicon Valley, much-feared tax bill pays dividends for workers (Reuters) The U.S. tax overhaul is a boon to Silicon Valley technology companies like Apple Inc AAPL.O and Alphabet Inc GOOGL.O, which will enjoy big tax cuts and the chance to bring back billions of dollars from overseas at a reduced rate.

U.S. Output Grew 3.2% in Third Quarter (Wall Street Journal) U.S. output grew at a 3.2% annual rate in the third quarter, the government said Thursday, a touch below a prior estimate but pointing to economic momentum ahead of a major tax cut.

Overnight markets

Overview: US 10yr note futures are down -0.051% at 123-15, S&P 500 futures are up 0.08% at 2690, Crude oil futures are down -0.6% at $58.01, Gold futures are up 0.06% at $1271.4, DXY is up 0.13% at 93.395, CAD/USD is up 0.4% at 0.7819. 

US Economic Data

Canadian Economic Data

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, Hugues Savard

Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

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

Market Update

Tsys trading higher before 8:30 data (Phil Fed, GDP), 10Y 2.48% (-1.6bps) after three day selloff. Current levels on TY near highs of overnite range on moderate volume (288k). Equities firmer (S&P fut +5.25), crude slightly weaker. Core EGBs lower,  gilts trading lower led by 5-10Y sector, EU peripheral spreads at recent tights vs Germany before Catalan regional vote today. In Canada, GOCs lower & 1-2 bps wider vs tsys before CPI & retail sales. Provis opening unch after closing yest another 0.5bps tighter, Ont 48/27 curve trading below 10bps as longs outperform and despite continued narrowing in GOC 10s30s recently to ~25bps

News headlines 

House Republican Leaders Push Bare-Bones Temporary Funding (Bloomberg) The House is set to vote on a bare-bones stopgap funding plan that would avert a government shutdown on Saturday and likely force the Senate to abandon attempts to add other provisions.

Ryan Pushes Trump to Follow Tax Win With U.S. Welfare Revamp (Bloomberg) Republicans want to channel momentum from the GOP’s victory on taxes into a push to overhaul the nation’s welfare programs, though some of President Donald Trump’s advisers prefer a less controversial infrastructure plan at the top of his agenda.

May’s Top Cabinet Ally Damian Green Quits After Porn Claims (Bloomberg) U.K. Prime Minister Theresa May’s effective deputy, Damian Green, resigned after an official investigation found that he’d made misleading statements about pornography on one of his parliamentary office computers, and left questions unanswered about his behavior toward a female activist.

Bonds Tumble, Equities Mixed as Tax Bill Passes: Markets Wrap (Bloomberg)  U.S. stocks fluctuated while Treasury yields climbed to a nine-month peak as the Republican tax overhaul passed its final vote before going to President Donald Trump for his signature.

What Catalonia’s Vote Can, and Can’t, Accomplish (Bloomberg) An election in Catalonia Dec. 21 gives voters another chance to express their view on whether the region should press ahead with its fight to break away or remain within Spain. The vote was called in October, when Spanish Prime Minister Mariano Rajoy fired the Catalan government and dissolved the regional parliament in a bid to snuff out the secession movement. With ousted Regional President Carles Puigdemont in self-imposed exile in Brussels, the ballot may do little to settle the bitter division over Catalonia’s bid for independence — and Rajoy’s efforts to stop it.

Domestic wholesale trade data, oil lift Canadian dollar (Reuters) The Canadian dollar strengthened against its U.S. counterpart on Wednesday after domestic data showed wholesale trade rose more than expected in October, which could bode well for economic growth at the start of the fourth quarter.

Trump administration sides with Boeing in Bombardier dispute (Reuters) The Trump administration on Wednesday recommended steep anti-subsidy duties on Bombardier Inc’s CSeries jets, setting up the next round of a fierce international trade dispute between the United States and Canada.

Overnight markets

Overview: US 10yr note futures are up 0.076% at 123-18, S&P 500 futures are up 0.2% at 2686.75, Crude oil futures are down -0.55% at $57.77, Gold futures are down -0.13% at $1268, DXY is up 0.14% at 93.443, CAD/USD is down -0.27% at 0.7812. 

US Economic Data

Canadian Economic Data

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, Hugues Savard

Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

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