Commentaires

Market Update

US tsys slightly weaker, 10Y yield 2.325% (+1bp), curve flatter led by longs after block buy in ultra longs (ULZ) at 167-04. Equity futures steady (S&P -0.75), crude higher for a 4th day 57.40 amid widening of Saudi corruption crackdown. Core Euro bonds mixed – gilt yields 2bps lower, recovering earlier losses , led by  the long end on solid demand for new 2048 gilt linker syndication amid upcoming m/e large index extension (1Y in linkers). GOCs trading higher, outperforming tsys by 0.5-1bps, 10Y approaching 1.90% (1.91 – 1.5bps). Provincials closing better bid again yest on no supply

News headlines 

Why the Next Four Days Will Be Crucial for the GOP Tax Bill (Bloomberg) The House tax-writing committee begins debate Monday on the GOP’s proposed overhaul, kicking off four frantic days for lobbyists and lawmakers to revise a bill that represents President Donald Trump’s final hope for a signature legislative achievement this year.

Trump Softens Tone on North Korea, Urges Deal on Nuclear Weapons (Bloomberg) President Donald Trump toned down his harsh rhetoric toward North Korea during a visit to Seoul, telling reporters the Pyongyang regime should “come to the table” to make a deal and refusing to rule out direct talks.

Saudi Corruption Purge Snares $33 Billion of Net Worth (Bloomberg) Crown Prince Mohammed bin Salman’s crackdown on some of Saudi Arabia’s richest and most powerful men has put $33 billion of personal wealth at risk.

Nikkei 225 Stock Average Rises to Highest Close Since 1992 (Bloomberg)  Japanese stocks rallied, with the Nikkei 225 Stock Average reaching its highest close since January 1992, bolstered by strong corporate earnings and the yen’s weakness against the dollar.

Stocks Rise as Trump Talks Asia Trade; Bonds Gain: Markets Wrap (Bloomberg) U.S. stocks climbed and bonds advanced, while the dollar slipped as President Donald Trump tried to tackle trade on his Asia tour. A crackdown on corruption in Saudi Arabia sent oil soaring to its highest price in more than two years.

With Two Months to Go, U.S. Faces ‘Mad Dash’ to Adjust to MiFID (Bloomberg) For thousands of brokers, traders and money managers based in the U.S., time is running out. A shock wave is about to emanate from Brussels, the capital of the 28-nation European Union. That may as well be the dark side of the moon for some toiling away at financial firms in the U.S. A sweeping set of financial regulations dubbed MiFID II will take hold on Jan. 3, affecting everything from investment research to the booking of transactions. Most have heard of it, but they haven’t all fully addressed what will likely become a seismic industry shift.

Valeant beats profit estimate on Bausch and Lomb strength (Reuters) Canada’s Valeant Pharmaceuticals International Inc (VRX.N) (VRX.TO) reported a better-than-expected quarterly profit due to strength in its Bausch and Lomb eye-care business, sending its shares up 11.7 percent in premarket trading.

Stephen Bronfman denies link to offshore trust, but documents show it helped expand family business (CBC) Liberal fundraiser Stephen Bronfman, under fire for his ties to an offshore trust in the Cayman Islands exposed in the Paradise Papers, insisted Monday that he « has never funded nor used offshore trusts. »

Overnight markets

Overview: US 10yr note futures are down -0.037% at 125-10, S&P 500 futures are down -0.02% at 2588.25, Crude oil futures are down -0.1% at $57.29, Gold futures are down -0.31% at $1277.6, DXY is up 0.34% at 95.08, CAD/USD is up 0.46% at 0.7835

US Economic Data

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, Hugues Savard

Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.

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

Market Update

US tsys trading mixed, with the curve 1bp flatter and the 10Y 0.5bps lower @2.325% on above avg volume in TY futures (330k). Tsys lagging the rise in German bunds, gilts with yields 1-2.5bps lower even as Eurozone producer prices rose 2.9% in Sep vs 2.7% forecast and oil hit a two year high, rising for a third session on the latest arrests in Saudi Arabia. SF Fed pres Williams said the Fed hould raise rates in Dec and 3 more times next year in an interview with MNI. GOCs are trading higher in line with tsys with the 10Y at a two month low 1.94%, the short end bearing the brunt of last Friday’s stronger employment data. provis opening unch after closing Fri 0.5bps tighter.

News headlines 

Texas church shooter kills at least 26 in state’s deadliest mass shooting (CBC) A man dressed in black tactical-style gear and armed with an assault rifle opened fire inside a church in a small South Texas community on Sunday, killing 26 people and wounding about 20 in what the governor called the deadliest mass shooting in the state’s history. The dead ranged in age from 5 to 72 years old.

Crackdown on Billionaires and Other Top Officials Shakes Up Saudi Arabia (Bloomberg) Even by the standards of Crown Prince Mohammed bin Salman, whose meteoric ascent has put him on the cusp of the Saudi throne at the age of 32, the Saturday night crackdown was stunning.

Oil Trades Near 2-Year High After Saudi Prince Purges Officials (Bloomberg) Oil traded near the highest level in two years after Saudi Arabia’s Crown Prince, Mohammed bin Salman, ousted officials during an anti-graft probe in the world’s biggest crude exporter.

Trump Warns Against Challenging U.S. During First Stop in Asia  (Bloomberg) President Donald Trump warned nations against challenging the U.S. as he rallied American troops in Japan on the first stop of his 11-day tour of Asia. Speaking to U.S. and Japanese military personnel on Sunday at Yokota Air Base in western Tokyo, Trump said he’d push for freedom in the region and fair trade in meetings with other leaders. He also exuded confidence in the U.S. military as tensions rise with North Korea.

Weakened Trump Looks to the ‘King of China’ to Give Him a Boost (Bloomberg) Shortly after Donald Trump’s surprise election win, Barack Obama gave some advice to President Xi Jinping in the final minutes of their last meeting as leaders of the world’s biggest economies.

Broadcom Explores Deal to Buy Chipmaker Qualcomm (Bloomberg) Broadcom Ltd. is considering a bid of more than $100 billion for Qualcomm Inc., according to people familiar with the matter, in what would be the biggest-ever takeover of a chipmaker.

The Paradise Papers Data Dump: What’s Been Reported So Far (Bloomberg) A new set of data taken from an offshore law firm again threatens to expose the hidden wealth of individuals and show how corporations, hedge funds and others may have skirted taxes. A year after the Panama Papers, a massive leak of confidential information from the Bermuda law firm Appleby Group Services Ltd. has shone another light on the use of offshore accounts.

Greater Montreal homes sold quicker in Oct. as prices rose seven per cent (CTV) Greater Montreal homes sold more quickly in October as continued strong demand propelled average prices seven per cent higher, the area’s real estate board said Monday. « The single-family home and plex markets are becoming increasingly favourable to sellers, as selling times for these property categories are falling, » said Mathieu Cousineau, president of the Greater Montreal Real Estate Board.

Canada job market shows unexpected strength, wage growth firms (Reuters) he Canadian economy added more jobs than expected in October as wages posted their biggest gain in 18 months, a sign that labor market slack could be tightening despite strong employment growth over the last year.

Overnight markets

Overview: US 10yr note futures are up 0.15% at 125-11, S&P 500 futures are down -0.05% at 2581.5, Crude oil futures are up 0.74% at $56.05, Gold futures are up 0.23% at $1272.1, DXY is up 0.02% at 94.963, CAD/USD is down 0% at 0.7835.

US Economic Data

There is no US economic Data for today.

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 open slightly weaker pre Oct payrolls, Us 10Y 2.35%, low volume in TY futures (22k), narrow overnite range. Very little movement in EGBs as well, UK gilts weighed by better than expected UK service PMI for Oct (55.6 vs 53.3), also profit taking after yest BOE’s ‘dovish rate hike’.  GOCs lower in line with tsys, 10Y 1.962% before Cda empl data. Two year auction went well, Feb20/2Y roll closing 0.2bps tighter @ 3.2/3.0. Provis open unch after ending yest 0.5bps wider, Ont 48/27 curve unch 9.8/9.6.

News headlines 

Storm Surge Set to Boost U.S. Payrolls, Reversing September’s Loss (Bloomberg) Employers added 312,000 workers in October, according to the Bloomberg survey median, after two hurricanes helped reduce payrolls by 33,000 a month earlier, the first decline since 2010. While the projected gain would be the largest in two years as people resumed work, economists say the effects on the job market from hurricanes Harvey and Irma will linger through year-end.

Powell Lauds Economy’s Progress, Vows Vigilance on Market Risks (Bloomberg) Jerome Powell, President Donald Trump’s pick to lead the Federal Reserve, talked up the strength of the U.S. economy as he pledged to guard against financial market risks.

Here Are the Big Tax Changes House Republicans Are Proposing (Bloomberg) House Republicans announced a tax proposal Thursday that would cut the U.S. corporate tax rate to 20 percent, reduce most of the individual tax brackets, and cap the mortgage-interest deduction on new purchases of homes.

Homebuilders Slide After GOP Tax Plan Caps Mortgage-Interest Break (Bloomberg) The U.S. real estate industry reeled as the House Republican tax bill proposed capping the mortgage-interest deduction, a long-cherished incentive many Americans have had to buy a house.

A Few Tremors, No Major Quakes in Equities After Tax Proposals (Bloomberg) It sent a quick shock through a couple odd corners of the market, but in the end the House’s tax proposal blended enough risk and reward for equity investors to leave them unfazed. Concern among bulls that they may have been mildly misled about the benefits to business was mixed with relief about retirement-account limits.

French Government Eases Grip on Renault With $1.4 Billion Sale (Bloomberg) France gave up some of its control over Renault SA with the sale of a 4.7 percent stake in the carmaker that was acquired in a contentious power struggle two years ago. The government sold 14 million Renault shares for 1.21 billion euros ($1.4 billion), reducing its stake back to its historical level of 15 percent, the state’s investment agency APE said. Renault acquired 1.4 million shares as part of the transaction and plans to offer them to employees, the Boulogne-Billancourt-based company said in a statement Friday.

Venezuela Will Seek to Restructure Its Debt (Bloomberg)  President Nicolas Maduro said Venezuela will seek to restructure its global debt after the state oil company makes one more payment, blaming U.S. sanctions for making it impossible to find new financing.

U.S. cuts softwood lumber duties on all Canadian producers – except for 2 companies (Global News) Canadian softwood lumber producers will be hit only slightly less forcefully as the U.S. government reduced export duties for most Canadian producers after ongoing political talks failed to reach a deal.

Overnight markets

Overview: US 10yr note futures are down -0.012% at 125-04, S&P 500 futures are up 0.07% at 2578.5, Crude oil futures are up 0.29% at $54.7, Gold futures are down -0.25% at $1274.9, DXY is up 0.09% at 94.77, CAD/USD is up 0.13% at 0.7797. 

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