Daily Market Commentary

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Get a complete view of the world as seen through the eyes of our investment professionals each and every business day shortly after the opening bell.

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.​​​​​

  • May-11-2016

    Wednesday, May 11, 2016 - 09:00 EDT
    (Open) Risk assets were mixed overnight as North American equity markets closed higher yesterday. The Yen strengthened, which saw the Nikkei close unchanged but a bounce in China’s raw material futures helped Chinese markets close higher. European equities are lower after industrial production in the UK shrank 0.4%, and manufacturing output was lower than expected. Meanwhile, oil is trading higher.
  • Risk assets are higher this morning as ...

    Tuesday, May 10, 2016 - 09:00 EDT
    (Open) Risk assets are higher this morning as commodities find some stability. In Asian markets, the Yen continues to weaken, leading the Nikkei up to over 2% while the Chinese markets were basically unchanged, after encouraging inflation numbers quelled deflationary concerns.
  • U.S. equity futures are pointing to a...

    Monday, May 9, 2016 - 09:00 EDT
    (Open)
  • Equities are opening up positive as...

    Thursday, May 5, 2016 - 09:00 EDT
    (open) Equities are opening up positive as crude oil prices rose almost 3% overnight.
  • U.S. equities are poised to open ...

    Wednesday, May 4, 2016 - 09:00 EDT
    (open)
  • Golbal shares retreated with ...

    Tuesday, May 3, 2016 - 09:00 EDT
    (Close) Global shares retreated with crude oil leading the decline, whereas Treasuries surged along with the dollar, as evidence of limp economic growth around the world sparked a retreat from riskier assets. 
  • U.S. equity futures are pointing to a ...

    Monday, May 2, 2016 - 09:00 EDT
    (Close) U.S. shares rose by the greatest amount in two weeks and the U.S. dollar weakened, as the market lowered expectations for a rate hike in June.  These lowered expectations were due to data released today which showed that manufacturing slowed last month.  CDXIG26 is wider by 0.8 to 78.5 but credit in general continued to be well bid, with NVCC and higher beta names tighter by 2-3bps.  Treasuries fell, reversing earlier gains, as manufacturers are paying higher prices for raw materials, a sign of upward pressure on inflation.
  • The US dollar headed to its lowest level in ...

    Friday, April 29, 2016 - 09:00 EDT
    The U.S. dollar headed to its lowest level in almost a year on speculation the Federal Reserve won’t rush to raise interest rates.  Stocks fell and commodities extended their gains in their best month since 2010.  CDXIG26 is 0.9 wider to 77.7.  However Canadian credit still remains well bid and we suspect this will continue due to lack of supply and stretch for yield.  
  • US stocks retreated as Apple Inc. ...

    Thursday, April 28, 2016 - 09:00 EDT
    (Close)  U.S. stocks retreated, as Apple Inc. led an afternoon selloff in technology shares, overshadowing corporate deals and strong results from Facebook Inc.  Sentiment was already fragile after the Bank of Japan refrained from adding more stimulus measures.  There were some sizable flows today, in credit, with large blocks of buying and selling getting done, in particular we saw additional buying of longer dated credit. 
  • As per the FOMC announcement, no ...

    Wednesday, April 27, 2016 - 09:00 EDT
    (Close)
  • First Capital came to the market with ...

    Tuesday, April 26, 2016 - 09:00 EDT
    (Close) First Capital came to the market with a $150mln 10yr deal that was met with 53 buyers.  The book was $1.5bln.  The deal tightened by 9bps on the break.  This is commensurate with other transactions we’ve seen lately, with long credit remaining very well bid.  CDXIG26 is 0.4 wider to 75.3.  Global stocks edged a little higher on a rally in crude and anticipation of tomorrow’s FOMC policy decision. 
  • Equities finished the day closing down as ...

    Monday, April 25, 2016 - 09:00 EDT
    (Close) Equities finished the day closing down as Oil gave up some of the recent gains, dropping just under 2%. It appears that stocks are finding it hard to break higher as equity markets are trading within 1% of all-time highs. Earning announcements and the FOMC are going to be the key focus for rest of the week as investors appear to be in a wait and watch mode and not opting to take a clear direction. Corporate Spreads finished the day tighter by 5 bps on the back of GE tendering for $5.15 billion of its CAD$ debt. 
  • U.S. stocks fluctuated after ...

    Friday, April 22, 2016 - 09:00 EDT
    (Close) U.S. stocks fluctuated after erasing declines, with energy and financial shares advancing to offset earlier losses. Corporate credit in general saw more buying than anything else.  Credits that no one wanted last week was very much in demand. 
  • The ECB kept its unprecedented stimulus as

    Thursday, April 21, 2016 - 09:00 EDT
    (Close)
  • U.S. stocks edged higher as oil

    Wednesday, April 20, 2016 - 09:00 EDT
    (Close) U.S. stocks edged higher as oil rallied, boosting energy shares.  Iraq’s oil minister has said that major OPEC and other oil producers will meet possibly next month in a new push to freeze output.  Credit continues to be extremely well bid with credit spreads in general tighter by 2-5bps depending on sector. TD NVCC 10yr bonds have now caught a strong bid and are 10bps tighter from yesterday.  CDXIG26 is 2.5 tighter to 73.4.   
  • The U.S. dollar fell to

    Tuesday, April 19, 2016 - 09:00 EDT
    (Close)
  • U.S. stocks advanced, while

    Monday, April 18, 2016 - 09:00 EDT
    (Close)
  • U.S. stocked retreated driven by

    Friday, April 15, 2016 - 09:00 EDT
    (Close)   U.S. stocked retreated driven by the energy producers, which overshadowed better-than-expected earnings from Citigroup Inc.  Treasuries gained as a report on U.S. manufacturing output unexpectedly fell last month, by the most in more than a year, underscoring traders’ views that the Federal Reserve faces an uphill battle in raising rates.  CDXIG26 is 1.4 wider to 80.7.  Credit in general was well supported due to lack of issuance.  
  • Asian market rallied overnight after...

    Thursday, April 14, 2016 - 09:00 EDT
    (Close)   U.S. stocks fluctuated with investors assessing earnings releases.  Banks rallied as Bank of America Corp stated it sees more room to cut costs.  The pickup in consumer prices at the start of 2016 just about stalled out in March, supporting the Federal Reserve’s view that the central bank should raise rates gradually.  
  • As widely expected, the Bank of Canada ...

    Wednesday, April 13, 2016 - 09:00 EDT
    (Close)  
  • Today, the IMF cut its global growth outlook from ...

    Tuesday, April 12, 2016 - 09:00 EDT
    (Close)
  • U.S. stocks erased their earlier gains as ...

    Monday, April 11, 2016 - 09:00 EDT
    (Close) U.S. stocks erased their earlier gains as global equities faltered.  The decline is due to expectations for a very poor earnings season, possibly the worst since the financial crisis.  Treasuries fluctuated, with yields near the lowest in the past two months, as investors continue to weigh the Federal Reserve’s aim to raise U.S. interest rates, against signs of slow global economic growth.  CDXIG26 is 1.1 tighter to 81.6.  Corporate credit in Canada continues to be better bid as issuance continues to disappoint. 
  • As the week comes to an end, oil ...

    Friday, April 8, 2016 - 09:00 EDT
    (Close)
  • U.S. equities tumbled by ...

    Thursday, April 7, 2016 - 09:00 EDT
    (Close)
  • In the Federal Reserve minute meetings ...

    Wednesday, April 6, 2016 - 09:00 EDT
    (Close)
  • Fortis B.C. came to market with a ...

    Tuesday, April 5, 2016 - 09:00 EDT
    (Close)
  • U.S. stocks slipped from ...

    Monday, April 4, 2016 - 09:00 EDT
    (Close) U.S. stocks slipped from their highest levels of the year as investors assess whether a 6-week rally has taken equities too far too quickly.  Treasuries were little changed.  CDXIG25 is 0.6 wider to 76.5.  Credit in general was well supported.  There was a lot of two way flow. Overall, credit will finish unchanged.   Altagas came with a $350mln 10yr deal that had over $1bln in the book and broke 4bps tighter.  However, as the day progressed, the bonds will finish the day unchanged. 
  • The US manufacturing sector expanded in ...

    Friday, April 1, 2016 - 09:00 EDT
    (Close)
  • In market news, the S&P500 Index ...

    Thursday, March 31, 2016 - 09:00 EDT
    (Close)
  • Equities finished stronger as ...

    Wednesday, March 30, 2016 - 09:00 EDT
    (Close) 
  • The Fed Chair, Janet Yellen, spoke for ...

    Tuesday, March 29, 2016 - 09:00 EDT
    (Close)
  • It was a relatively quiet day, with ...

    Monday, March 28, 2016 - 09:00 EDT
    (Close) It was a relatively quiet day, with small 2-way flows in deposit notes, NVCC, and some energy names.  February U.S. spending was reported and barely showed an increase while January’s result was revised lower, as people saved more of their income.  Steady and slow advances of purchases over the last 3 months appear to show that consumers are being more cautious about overextending themselves financially.  Robust labour conditions and savings from cheaper gasoline are providing a solid foundation for households. 
  • Yesterday, equities closed weaker and...

    Thursday, March 24, 2016 - 09:00 EDT
    (Open) Yesterday, equities closed weaker and oil continues to trade lower below $39. Asian equities also closed weaker overnight. In addition, S&P commented on what was said in the budget regarding the senior bail-in issuance yesterday. This suggested implementation date is further out than some market participants expected, from 2016/2017 to 2018 or later.
  • Crude oil finished lower and ...

    Wednesday, March 23, 2016 - 09:00 EDT
    (Close) Crude oil finished lower and commodity producers caused equities to lose their 5 week rally momentum.  CDXIG25 is relatively unchanged but corporate credit remained better bid.  Just as a reference, those TD 10yr NVCCs have now broken through the 300 mark with a 299 bid.  Dealer inventories are quickly depleting.  Tomorrow the bond market will close early as Friday will be a holiday.  We suspect no issuance tomorrow on account of the shorter work day with the same themes continuing. 
  • European stocks ...

    Tuesday, March 22, 2016 - 09:00 EDT
    (Close) European stocks erased most of the losses from the Brussels attacks this morning.  However, Canadian stocks were slightly lower as the attacks may have fueled demand for safe haven assets.  Meanwhile, treasuries fell, erasing earlier gains as Federal Reserve Bank of Chicago President Charles Evans called U.S. economic fundamentals “really quite good” after two gauges of manufacturing activity improved in March. Credit in general continue to be better bid, especially in long corporate utilities and telecom. 
  • Within fixed income markets, long ...

    Monday, March 21, 2016 - 09:00 EDT
    (Close) Within fixed income markets, long utilities, cable telecom, and energy continued to be better bid today.  However, we started to see some market participants selling, as valuations became too good to pass up.  We will see if this trend continues tomorrow. Tomorrow we get the first Federal budget from the new Liberal Government, where we expect the main focus to be on infrastructure spending.  This could have an impact on infrastructure spreads.  CDXIG25 is 7.6 tighter to 78.
  • Following the market close today, the ...

    Friday, March 18, 2016 - 09:00 EDT
    (Close)   Following the market close today, the S&P500 has now erased its 2016 losses, as favorable shifts in central bank policies continue to fuel demand for equities.  Oil fluctuated near a 3-month high.  Next week, will be a short week with markets closed for Good Friday.  We suspect, the strong bid for risk assets will continue.   
  • The Dow Jones has now ...

    Thursday, March 17, 2016 - 09:00 EDT
    (Close)   The Dow Jones has now recovered its 2016 losses, as a weaker USD spurred a rally in commodity producers and industrial shares. Oil surpassed $40 a barrel. Tomorrow we’ll receive Canada’s inflation data.  The expectation is for a gain of 1.4% with core CPI at 2%.  
  • The Federal Reserve kept its rate unchanged in ...

    Wednesday, March 16, 2016 - 09:00 EDT
    (Close)  
  • Stocks declined, and bonds ...

    Tuesday, March 15, 2016 - 09:00 EDT
    (Close) Stocks declined, and bonds threaded water, as commodities dropped for a second day in a row. Markets appear to be in a wait and see mode ahead of tomorrow’s FOMC meeting with a focus on some forward guidance on the future trajectory of rates. Credit markets continued to see a strong bid as higher beta, BBB names, started to see more interest from the investors and basis points between A and BBB names continued to compress. 
  • Asian equity markets rallied overnight ahead of ...

    Monday, March 14, 2016 - 09:00 EDT
    (Close)   Given the forthcoming FOMC’s meeting, it was a relatively quiet day in the North American equity markets. Oil did gave up some of its recent gains, dropping 3.27%.  
  • Risk assets - from equities to ...

    Friday, March 11, 2016 - 09:00 EST
    (Close)  
  • With the ECB’s announcement of ...

    Thursday, March 10, 2016 - 09:00 EST
    (Close)
  • The Bank of Canada ...

    Wednesday, March 9, 2016 - 09:00 EST
    (Close)
  • Global stocks declined as ...

    Tuesday, March 8, 2016 - 09:00 EST
    (Close)
  • In corporate credit, TransCanada ...

    Monday, March 7, 2016 - 09:00 EST
    (Close)
  • Equities advanced on the back of ...

    Friday, March 4, 2016 - 09:00 EST
    (Close)  
  • Stocks in the U.S. erased the losses as ...

    Thursday, March 3, 2016 - 09:00 EST
    (Close)   Stocks in the U.S. erased the losses as oil rebounded and commodity producers gained, offsetting health-care and technology stocks. Tomorrow’s nonfarm payrolls will be watched carefully as the market continues to search for clues as to whether or not the Fed will continue its hiking path this year.  
  • U.S. stocks fluctuated, but ...

    Wednesday, March 2, 2016 - 09:00 EST
    (Close)   U.S. stocks fluctuated, but banks continued to rally.  In addition, a rebound in oil caused energy shares to do better.  
  • Canada’s economy registered an unexpected ...

    Tuesday, March 1, 2016 - 09:00 EST
    (Close)

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