Mornings Comments
Available every day before market open23/01/2020
Market Update
Tsys higher led by the long end of the curve, 10Y below 1.75% for the first time since Dec 3rd, US equity futures lower (S&P -0.19%). Core EGBs also higher, no change in monetary policy by ECB as exp, bond buying will continue. German bunds flatter with 2s30s 1.5bps narrower, 10Y bund -0.28% at two week low. GOCs higher in line with tsys, Can/US 5-7bps tighter post dovish BOC yesterday, 10Y 1.41% is ~17bps lower on the week, lowest since late Oct. Expect provi supply to pick up again, particularly at these all in yield levels, HQ rumoured.
News headlines
Stocks Slip, Bonds Climb on Virus Fears; Oil Drops: Markets Wrap (Bloomberg) U.S. equity futures fluctuated while European stocks edged lower and Asian shares slumped on Thursday amid lingering concerns that a virus spreading from China to other countries could become a drag on global growth. Treasuries climbed and crude oil fell.
TSX futures edge up as dovish BoC stance offsets lower oil prices (Reuters) Canada’s main stock index futures rose slightly on Thursday, as dovish comments by the Bank of Canada at its policy announcement offset lower oil prices.
Oil Falls to Seven-Week Low as Asia Virus Eclipses Supply Loss (Bloomberg) Oil fell further after hitting a seven-week low on speculation that China’s coronavirus outbreak may dent demand, just as the market already contends with plentiful supplies.
Virus fears sap stocks; ECB gets ready for rethink (Reuters) World shares fell on Thursday, led by the biggest tumble in Chinese stocks in more than eight months, as concern mounted about a new coronavirus outbreak in China.
France, U.S. agree to push global ‘digital tax’ talks forward (Reuters) France and the United States agreed on Thursday how to press ahead with a global rewrite of cross-border tax rules for the digital era, French Finance Minister Bruno Le Maire said.
ECB launches review, keeps policy on hold (Reuters) The European Central Bank left its policy unchanged on Thursday and launched a “strategic review” of its inflation goal and tools.
Bank of England eases liquidity system as Brexit transition deal looms (Reuters) The Bank of England said it will ease its liquidity monitoring system put in place in case Britain left the European Union without a transition deal.
Thai bourse to miss expansion target as economy slows (Reuters) Thailand’s stock market will not reach its goal to expand by nearly 50% from current levels by 2023, its president said on Thursday, as the country’s economic slowdown is hurting share prices.
Thailand plans new tax incentives to boost investment (Reuters) Thailand’s finance ministry will submit to the cabinet on Tuesday a package of tax incentives to encourage investment, a deputy prime minister said on Thursday, as the government looks to revive a flagging economy.
Market Overview: US 10yr note futures are up 0.145% at 129-24, S&P 500 futures are down -0.15% at 3314.75, Crude oil futures are down -1.89% at $55.67, Gold futures are down -0.07% at $1555.6, DXY is up 0.02% at 97.542, CAD/USD is up 0.2% at 0.7598.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.534% | 2 Year | 1.512% |
| 5 Year | 1.439% | 5 Year | 1.554% |
| 10 Year | 1.432% | 10 Year | 1.741% |
| 30 Year | 1.567% | 30 Year | 2.185% |
US Economic Data
| 08:30 AM | Initial Jobless Claims, Jan 18 Survey: 214k Prior: 204k |
| Continuing Claims, Jan 11 Survey: 1756k Prior: 1767k | |
| 09:45 AM | Bloomberg Economic Expectations, Jan Survey: — Prior: 56.5 |
| Bloomberg Consumer Comfort, Jan 19 Survey: — Prior: 66.0 | |
| 10:00 AM | Leading Index, Dec Survey: -0.20% Prior: 0.00% |
| 11:00 AM | Kansas City Fed Manf. Activity, Jan Survey: -6 Prior: -8 |
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
22/01/2020
Market Update
US tsys trading unch, prices fading since early NA trading on avg volume (TY 350k), 10Y 1.775%, long end outperforming slightly. US futures higher, S&P +13, Nasdaq +60. Core EGBs mixed – UK gilts under pressure after upbeat factory survey – CBI optimism rose to 6 year high in Jan. GOCs lower , 0.5-1bp wider vs tsys before Dec CPI & BOC decision. CPI expected to have risen 2.3% from 2.2%, with the common core measure unch at 2.4% – the avg core measure rose to 2.17% in Nov the highest since 2009.
News headlines
U.S. Futures Gain as China Moves to Contain Virus: Markets Wrap (Bloomberg) U.S. equity-index futures gained on Wednesday as China took steps to contain the spread of a deadly virus that had rattled international markets. Treasuries and the dollar were steady.
CANADA STOCKS-TSX futures tick up ahead of BoC policy meeting, inflation data (Reuters) Futures for Canada’s main stock index edged up on Wednesday, ahead of the central bank’s interest rate decision and inflation data due later in the day.
Stephen Poloz enters home stretch hawkish on rates (BNN) Stephen Poloz is heading into the final few months of his term as Bank of Canada governor showing few signs of giving up his status as one of the industrialized world’s most hawkish central bankers.
Oil Declines on Concerns Asia Virus Could Reduce Demand (Bloomberg) Oil declined on concerns that a coronavirus outbreak in Asia could spread and curtail demand in a market that’s already contending with plentiful supplies.
Trump says will meet with WTO chief, promises ‘dramatic’ steps (Reuters) U.S. President Donald Trump on Wednesday vowed dramatic action with the World Trade Organization, saying the group’s director general would visit Washington as soon as next week, but giving no other details.
Trump says he expects to make trade deal with Europe (Reuters) U.S. President Donald Trump on Wednesday said he expects to be able to make a trade deal with Europe, but that negotiating an agreement is in many ways tougher than the trade pact he brokered with China.
PRECIOUS-Gold steadies on central bank policy expectations (Reuters) Gold was little changed on Wednesday as strong technical support on expected dovish monetary policy from global central banks offset revived appetite for riskier assets and an upbeat dollar.
With record profits on Wall Street, small bonuses will annoy bankers: experts (Reuters) Most Wall Street banks announced their fourth quarter profits beat industry expectations last week. But by the end of this week, bank sources and compensation experts told Reuters, most of their staff will be underwhelmed by their bonuses.
Market Overview: US 10yr note futures are down -0.048% at 129-17, S&P 500 futures are up 0.4% at 3332.75, Crude oil futures are down -0.87% at $57.87, Gold futures are down -0.13% at $1555.9, DXY is up 0.02% at 97.55, CAD/USD is down -0.14% at 0.7662.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.623% | 2 Year | 1.53% |
| 5 Year | 1.544% | 5 Year | 1.578% |
| 10 Year | 1.525% | 10 Year | 1.774% |
| 30 Year | 1.634% | 30 Year | 2.231% |
US Economic Data
| 07:00 AM | MBA Mortgage Applications, Jan 17 Survey: — Actual: -1.20% Prior: 30.20% |
| 08:30 AM | Chicago Fed Nat Activity Index, Dec Survey: 0.13 Prior: 0.56 |
| 09:00 AM | FHFA House Price Index MoM, Nov Survey: 0.30% Prior: 0.20% |
| 10:00 AM | Existing Home Sales, Dec Survey: 5.43m Prior: 5.35m |
| Existing Home Sales MoM, Dec Survey: 1.50% Prior: -1.70% |
Canadian Economic Data
| 08:30 AM | Wholesale Trade Sales MoM, Nov Survey: -0.40% Prior: -1.10% |
| CPI NSA MoM, Dec Survey: 0.00% Prior: -0.10% | |
| CPI YoY, Dec Survey: 2.30% Prior: 2.20% | |
| Consumer Price Index, Dec Survey: 136.4 Prior: 136.4 | |
| New Housing Price Index MoM, Dec Survey: 0.00% Prior: -0.10% | |
| New Housing Price Index YoY, Dec Survey: -0.10% Prior: 0.00% | |
| 10:00 AM | Bank of Canada Rate Decision, Jan 22 Survey: 1.75% Prior: 1.75% |
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
21/01/2020
Market Update
US tsys trading higher on heavy volume in TY futures (610k), 10Y 1.795% (-2.5bps). Risk off move linked to deaths tied to Coronavirus in China, US equity futures lower with S&P -10.25, thou crude and gold are lower. European bonds mostly lower led by 10Y gilts ~ UK employment came in above exp (208k vs 110k exp) with AHE 3.2% vs 3.1% exp). GOCs higher, lagging the move in tsys by 1bp in 10s. Nov Manufacturing Sales weaker than exp (-0.6% vs -0.5%) with Oct revised lower. Dec CPI and BOC rate decision tomorrow.
News headlines
U.S. Futures Slip as Europe Stocks Trim Decline: Markets Wrap (Bloomberg) U.S. equity futures slipped on Tuesday, pointing to declines after the long weekend as investors grapple with worries about a deadly virus in China that sparked earlier declines across Asia and Europe. Treasuries rose.
TSX falls on China virus worries, weaker oil prices (Reuters) Futures for Canada’s main stock index were lower on Tuesday, as rising worries about a new virus in China prompted a flight to safe-haven assets and oil prices fell on easing supply concerns.
Oil Slides as Ample Supplies Soften Shock of Libya Disruption (Bloomberg) Oil fell as global markets remained comfortably supplied despite the suspension of exports from Libya, and as equities faltered on political and economic worries in Asia.
Trump takes credit for economic boom ahead of impeachment trial (BNN) President Donald Trump boasted about his handling of the U.S. economy in a speech to business and political leaders in Davos, hours before his impeachment trial was set to begin in Washington.
China virus sends shiver through markets as risks mount (Reuters) Global shares took a beating on Tuesday, wiping out all gains made at the start of the week as mounting concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets.
Mnuchin says Phase 2 trade deal may not remove all tariffs: WSJ (Reuters) The Phase 2 trade deal with China would not necessarily be a “big bang” that removes all existing tariffs, U.S. Treasury Secretary Steven Mnuchin told the Wall Street Journal in an interview.
BOJ raises growth forecast, signals status quo on policy outlook (Reuters) The Bank of Japan nudged up its economic growth forecasts on Tuesday and was cautiously optimistic about the global outlook, though it said ongoing risks meant it was far to soon to consider scaling down its massive stimulus program.
China virus sends chill through markets as risks rise (Reuters) Global stock markets took a hit on Tuesday as mounting concern about a new strain of coronavirus in China sent a ripple of risk aversion through markets.
Market Overview: US 10yr note futures are up 0.242% at 129-12, S&P 500 futures are down -0.29% at 3315.25, Crude oil futures are down -1.47% at $57.68, Gold futures are down -0.36% at $1554.7, DXY is down -0.16% at 97.45, CAD/USD is up 0.09% at 0.7657.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.64% | 2 Year | 1.543% |
| 5 Year | 1.565% | 5 Year | 1.596% |
| 10 Year | 1.552% | 10 Year | 1.795% |
| 30 Year | 1.669% | 30 Year | 2.257% |
US Economic Data
There is no US economic data for today
Canadian Economic Data
| 08:30 AM | Manufacturing Sales MoM, Nov Survey: -0.50% Actual : -0.60% Prior: -0.70% |
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
23/01/2020
Market Update
Tsys higher led by the long end of the curve, 10Y below 1.75% for the first time since Dec 3rd, US equity futures lower (S&P -0.19%). Core EGBs also higher, no change in monetary policy by ECB as exp, bond buying will continue. German bunds flatter with 2s30s 1.5bps narrower, 10Y bund -0.28% at two week low. GOCs higher in line with tsys, Can/US 5-7bps tighter post dovish BOC yesterday, 10Y 1.41% is ~17bps lower on the week, lowest since late Oct. Expect provi supply to pick up again, particularly at these all in yield levels, HQ rumoured.
News headlines
Stocks Slip, Bonds Climb on Virus Fears; Oil Drops: Markets Wrap (Bloomberg) U.S. equity futures fluctuated while European stocks edged lower and Asian shares slumped on Thursday amid lingering concerns that a virus spreading from China to other countries could become a drag on global growth. Treasuries climbed and crude oil fell.
TSX futures edge up as dovish BoC stance offsets lower oil prices (Reuters) Canada’s main stock index futures rose slightly on Thursday, as dovish comments by the Bank of Canada at its policy announcement offset lower oil prices.
Oil Falls to Seven-Week Low as Asia Virus Eclipses Supply Loss (Bloomberg) Oil fell further after hitting a seven-week low on speculation that China’s coronavirus outbreak may dent demand, just as the market already contends with plentiful supplies.
Virus fears sap stocks; ECB gets ready for rethink (Reuters) World shares fell on Thursday, led by the biggest tumble in Chinese stocks in more than eight months, as concern mounted about a new coronavirus outbreak in China.
France, U.S. agree to push global ‘digital tax’ talks forward (Reuters) France and the United States agreed on Thursday how to press ahead with a global rewrite of cross-border tax rules for the digital era, French Finance Minister Bruno Le Maire said.
ECB launches review, keeps policy on hold (Reuters) The European Central Bank left its policy unchanged on Thursday and launched a “strategic review” of its inflation goal and tools.
Bank of England eases liquidity system as Brexit transition deal looms (Reuters) The Bank of England said it will ease its liquidity monitoring system put in place in case Britain left the European Union without a transition deal.
Thai bourse to miss expansion target as economy slows (Reuters) Thailand’s stock market will not reach its goal to expand by nearly 50% from current levels by 2023, its president said on Thursday, as the country’s economic slowdown is hurting share prices.
Thailand plans new tax incentives to boost investment (Reuters) Thailand’s finance ministry will submit to the cabinet on Tuesday a package of tax incentives to encourage investment, a deputy prime minister said on Thursday, as the government looks to revive a flagging economy.
Market Overview: US 10yr note futures are up 0.145% at 129-24, S&P 500 futures are down -0.15% at 3314.75, Crude oil futures are down -1.89% at $55.67, Gold futures are down -0.07% at $1555.6, DXY is up 0.02% at 97.542, CAD/USD is up 0.2% at 0.7598.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.534% | 2 Year | 1.512% |
| 5 Year | 1.439% | 5 Year | 1.554% |
| 10 Year | 1.432% | 10 Year | 1.741% |
| 30 Year | 1.567% | 30 Year | 2.185% |
US Economic Data
| 08:30 AM | Initial Jobless Claims, Jan 18 Survey: 214k Prior: 204k |
| Continuing Claims, Jan 11 Survey: 1756k Prior: 1767k | |
| 09:45 AM | Bloomberg Economic Expectations, Jan Survey: — Prior: 56.5 |
| Bloomberg Consumer Comfort, Jan 19 Survey: — Prior: 66.0 | |
| 10:00 AM | Leading Index, Dec Survey: -0.20% Prior: 0.00% |
| 11:00 AM | Kansas City Fed Manf. Activity, Jan Survey: -6 Prior: -8 |
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
22/01/2020
Market Update
US tsys trading unch, prices fading since early NA trading on avg volume (TY 350k), 10Y 1.775%, long end outperforming slightly. US futures higher, S&P +13, Nasdaq +60. Core EGBs mixed – UK gilts under pressure after upbeat factory survey – CBI optimism rose to 6 year high in Jan. GOCs lower , 0.5-1bp wider vs tsys before Dec CPI & BOC decision. CPI expected to have risen 2.3% from 2.2%, with the common core measure unch at 2.4% – the avg core measure rose to 2.17% in Nov the highest since 2009.
News headlines
U.S. Futures Gain as China Moves to Contain Virus: Markets Wrap (Bloomberg) U.S. equity-index futures gained on Wednesday as China took steps to contain the spread of a deadly virus that had rattled international markets. Treasuries and the dollar were steady.
CANADA STOCKS-TSX futures tick up ahead of BoC policy meeting, inflation data (Reuters) Futures for Canada’s main stock index edged up on Wednesday, ahead of the central bank’s interest rate decision and inflation data due later in the day.
Stephen Poloz enters home stretch hawkish on rates (BNN) Stephen Poloz is heading into the final few months of his term as Bank of Canada governor showing few signs of giving up his status as one of the industrialized world’s most hawkish central bankers.
Oil Declines on Concerns Asia Virus Could Reduce Demand (Bloomberg) Oil declined on concerns that a coronavirus outbreak in Asia could spread and curtail demand in a market that’s already contending with plentiful supplies.
Trump says will meet with WTO chief, promises ‘dramatic’ steps (Reuters) U.S. President Donald Trump on Wednesday vowed dramatic action with the World Trade Organization, saying the group’s director general would visit Washington as soon as next week, but giving no other details.
Trump says he expects to make trade deal with Europe (Reuters) U.S. President Donald Trump on Wednesday said he expects to be able to make a trade deal with Europe, but that negotiating an agreement is in many ways tougher than the trade pact he brokered with China.
PRECIOUS-Gold steadies on central bank policy expectations (Reuters) Gold was little changed on Wednesday as strong technical support on expected dovish monetary policy from global central banks offset revived appetite for riskier assets and an upbeat dollar.
With record profits on Wall Street, small bonuses will annoy bankers: experts (Reuters) Most Wall Street banks announced their fourth quarter profits beat industry expectations last week. But by the end of this week, bank sources and compensation experts told Reuters, most of their staff will be underwhelmed by their bonuses.
Market Overview: US 10yr note futures are down -0.048% at 129-17, S&P 500 futures are up 0.4% at 3332.75, Crude oil futures are down -0.87% at $57.87, Gold futures are down -0.13% at $1555.9, DXY is up 0.02% at 97.55, CAD/USD is down -0.14% at 0.7662.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.623% | 2 Year | 1.53% |
| 5 Year | 1.544% | 5 Year | 1.578% |
| 10 Year | 1.525% | 10 Year | 1.774% |
| 30 Year | 1.634% | 30 Year | 2.231% |
US Economic Data
| 07:00 AM | MBA Mortgage Applications, Jan 17 Survey: — Actual: -1.20% Prior: 30.20% |
| 08:30 AM | Chicago Fed Nat Activity Index, Dec Survey: 0.13 Prior: 0.56 |
| 09:00 AM | FHFA House Price Index MoM, Nov Survey: 0.30% Prior: 0.20% |
| 10:00 AM | Existing Home Sales, Dec Survey: 5.43m Prior: 5.35m |
| Existing Home Sales MoM, Dec Survey: 1.50% Prior: -1.70% |
Canadian Economic Data
| 08:30 AM | Wholesale Trade Sales MoM, Nov Survey: -0.40% Prior: -1.10% |
| CPI NSA MoM, Dec Survey: 0.00% Prior: -0.10% | |
| CPI YoY, Dec Survey: 2.30% Prior: 2.20% | |
| Consumer Price Index, Dec Survey: 136.4 Prior: 136.4 | |
| New Housing Price Index MoM, Dec Survey: 0.00% Prior: -0.10% | |
| New Housing Price Index YoY, Dec Survey: -0.10% Prior: 0.00% | |
| 10:00 AM | Bank of Canada Rate Decision, Jan 22 Survey: 1.75% Prior: 1.75% |
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
21/01/2020
Market Update
US tsys trading higher on heavy volume in TY futures (610k), 10Y 1.795% (-2.5bps). Risk off move linked to deaths tied to Coronavirus in China, US equity futures lower with S&P -10.25, thou crude and gold are lower. European bonds mostly lower led by 10Y gilts ~ UK employment came in above exp (208k vs 110k exp) with AHE 3.2% vs 3.1% exp). GOCs higher, lagging the move in tsys by 1bp in 10s. Nov Manufacturing Sales weaker than exp (-0.6% vs -0.5%) with Oct revised lower. Dec CPI and BOC rate decision tomorrow.
News headlines
U.S. Futures Slip as Europe Stocks Trim Decline: Markets Wrap (Bloomberg) U.S. equity futures slipped on Tuesday, pointing to declines after the long weekend as investors grapple with worries about a deadly virus in China that sparked earlier declines across Asia and Europe. Treasuries rose.
TSX falls on China virus worries, weaker oil prices (Reuters) Futures for Canada’s main stock index were lower on Tuesday, as rising worries about a new virus in China prompted a flight to safe-haven assets and oil prices fell on easing supply concerns.
Oil Slides as Ample Supplies Soften Shock of Libya Disruption (Bloomberg) Oil fell as global markets remained comfortably supplied despite the suspension of exports from Libya, and as equities faltered on political and economic worries in Asia.
Trump takes credit for economic boom ahead of impeachment trial (BNN) President Donald Trump boasted about his handling of the U.S. economy in a speech to business and political leaders in Davos, hours before his impeachment trial was set to begin in Washington.
China virus sends shiver through markets as risks mount (Reuters) Global shares took a beating on Tuesday, wiping out all gains made at the start of the week as mounting concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets.
Mnuchin says Phase 2 trade deal may not remove all tariffs: WSJ (Reuters) The Phase 2 trade deal with China would not necessarily be a “big bang” that removes all existing tariffs, U.S. Treasury Secretary Steven Mnuchin told the Wall Street Journal in an interview.
BOJ raises growth forecast, signals status quo on policy outlook (Reuters) The Bank of Japan nudged up its economic growth forecasts on Tuesday and was cautiously optimistic about the global outlook, though it said ongoing risks meant it was far to soon to consider scaling down its massive stimulus program.
China virus sends chill through markets as risks rise (Reuters) Global stock markets took a hit on Tuesday as mounting concern about a new strain of coronavirus in China sent a ripple of risk aversion through markets.
Market Overview: US 10yr note futures are up 0.242% at 129-12, S&P 500 futures are down -0.29% at 3315.25, Crude oil futures are down -1.47% at $57.68, Gold futures are down -0.36% at $1554.7, DXY is down -0.16% at 97.45, CAD/USD is up 0.09% at 0.7657.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.64% | 2 Year | 1.543% |
| 5 Year | 1.565% | 5 Year | 1.596% |
| 10 Year | 1.552% | 10 Year | 1.795% |
| 30 Year | 1.669% | 30 Year | 2.257% |
US Economic Data
There is no US economic data for today
Canadian Economic Data
| 08:30 AM | Manufacturing Sales MoM, Nov Survey: -0.50% Actual : -0.60% Prior: -0.70% |
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