CANADA: PM Homes In On Improbable Majority After Another Conservative Defection

Dec-12 15:49

The defection of Greater Toronto Area MP Michael Ma from the Conservatives to the Liberals late on 11 December leaves PM Mark Carney's gov't just one seat short of an overall majority in the House of Commons. This scenario would have been viewed as improbable following the hung parliament delivered in the April federal election. Ma represents the Markham-Unionville riding, which has flipped between the Liberals and Conservatives in recent electoral cycles. 

  • Ma is the second MP to have crossed the floor from Pierre Poilievre's centre-right Conservatives to join the centre-left Liberals since the election, following in the footsteps of Chris d’Entremont (Acadie-Annapolis, NS), who joined the Liberals in November.
  • The defections boost the Liberals to 171 seats, one seat short of an overall majority.
  • They will also place further pressure on Poilievre, who faces an internal leadership review in January. There is no clear successor or challenger to Poilievre. However, the disastrous past 12 months for the party, going from a 20-point lead in the polls and widespread assumptions that the Conservatives would form the next gov't, to facing a fourth term of Liberal rule, means the opposition leader sits in an uneasy position. 

Historical bullets

GILT AUCTION PREVIEW: On offer next week

Nov-12 15:30

The DMO has announced it will be looking to sell GBP4.5bln of the 4.75% Oct-35 Gilt (ISIN: GB00BTXS1K06) at its auction next Wednesday, November 19.

SOFR OPTIONS: Midcurve outright Call buyer

Nov-12 15:25

3QM6 96.87c, bought for 13.5 in 2kl.

EUROSTOXX50 TECHS: EUROSTOXX50 Futures Bull Cycle Extends

Nov-12 15:22
  • A medium-term bull trend in EUROSTOXX 50 futures remains intact.
  • The contract has traded through resistance at 5742.00, the Oct 29 high to confirm a resumption of the uptrend.
  • This paves the way for an extension within the bull channel.
  • On the downside, initial firm support is seen at levels around the 20-day EMA.
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