Spanish equity markets are down over 1% this morning

Posted: Tuesday, October 10, 2017 - 08:22 EDT

Spanish equity markets are down over 1% this morning after the Spanish government announced that their police forces are ready to arrest Catalan President Puigdemont if he announces the region as an independent state.  Spain viewed last week’s referendum vote for independence as illegal with the Catalan president expected to make a statement this evening.  Brexit continues to remain in focus after Theresa May won support as she outlined her contingency plan for leaving the euro area that will help to minimize disruptions to businesses and travelers.    The U.K. Prime Minister indicated that her government is willing to walk away from the table by introducing new standalone legislation for the U.K. if the terms of the deal with the rest of the euro zone are unsatisfactory.  Negotiations are set to enter the fifth round of talks.

Otherwise, Canadian corporate credit markets were calm to enter the Thanksgiving weekend.  NAFTA discussions will enter the fourth round in Washington starting tomorrow, while U.S. banks will report earnings later in the week.  Flows on Friday were lighter due to the early market close going into the long weekend.  As a result, corporate credit spreads were mostly unchanged.

Equity Markets:

  Index Level % Change QTD YTD Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
S&P 500 2,544.73 -0.18% 1.07% 15.46% 2.44% 3.85% 3.82% 6.07% 3.09% 4.48%
TSX

15,728.32

-0.30% 0.69%

5.17%

5.06% 5.45% 4.53% 2.41% -1.64% 3.68%

Rates:

  Today % Change QTD change YTD change June 30  2016

Sept 30 2016

Dec 31 2016

Mar 31 2016 June 30 2017 Sept 30  2017
Canada 5 Year

1.772%

-0.01% 0.02% 0.65% 0.569% 0.615% 1.150% 1.119% 1.393% 1.753%
Canada 10 Year 2.114% -0.01% 0.01% 0.49% 1.059% 0.990% 1.750% 1.625% 1.762% 2.099%
Canada 30 Year 2.483% -0.01% 0.01% 0.18% 1.714% 1.658% 2.350% 2.302% 2.148% 2.472%
30yr Generic Corporate A rated Spread 1.240% 0.00% 0.00% -0.09% 1.610% 1.530% 1.390% 1.330% 1.210% 1.240%
30yr All-in Corporate A rated Yield

3.723%

-0.01% 0.01% 0.09% 3.324% 3.188% 3.740% 3.632% 3.358% 3.712%
US 10 Year 2.355% 0.00% 0.02% -0.03% 1.47% 1.60% 2.50% 2.39% 2.31% 2.33%
CDX IG 54.187 -0.057                

The information contained herein is intended for advisors for general information only and is compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made as to its accuracy. All opinions contained in the commentary and expressed by the portfolio manager are subject to change without notice and are provided in good faith without legal responsibility. All market data is sourced from Bloomberg.