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Pipeline Takeover Battle Continues; Indices Await Employment Numbers

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The bidding war for Canada’s Inter Pipeline continues to heat up. Brookfield Infrastructure Partners has raised its hostile takeover bid price to $19.75 per share from its previous bid of $16.50, which puts it higher than the $19.45 friendly takeover bid that came in from Pembina Pipeline yesterday.

After major US indices gave back yesterday’s early gains to finish flat, US index futures are flat this morning. Overseas trading has been mixed with the Nikkei gaining 0.4%, the FTSE up 0.2%, the Dax flat and the Hang Seng down 0.6%. Australia’s resource-sensitive S&P/ASX is up 1.0%, while Canada’s resource-sensitive S&P/TSX finished at an all-time high yesterday just below the 20,000 level.

It’s a quiet in-between day for economic news. Yesterday’s North American data was mixed as US ISM manufacturing PMI (61.2 vs street 60.7) and ISM new orders (67.0 vs street 66.3) beat expectations but Canadian Manufacturing PMI (57.0 vs street 57.9) and US construction spending (0.2% vs street 0.6%) were disappointing.

Due to the US holiday on Monday, some of the economic numbers which would usually come out today have been pushed off to tomorrow. Thursday and Friday look to be busy days for economic reports which include US ADP payrolls (street 650K vs previous 742K) at 8:15 am tomorrow. Thursday also brings Service PMI reports from around the world plus the weekly US energy inventories and US initial jobless claims numbers. Friday caps off the week with the US nonfarm payrolls and Canadian employment reports.

In commodity action today, crude oil prices continue to climb with WTI up 0.8% after OPEC+ came out of yesterday’s meeting indicating that they intend to stick with their current plan of increasing production through July without adding more at this point. Copper, on the other hand, is down 0.7% today.  

SIA Wealth In The Media

Chief Market Strategist Colin Cieszynski appeared on BNN Bloomberg yesterday and spoke about TSX 20,000 and changes in relative strength between asset classes and equity market sectors.

https://www.bnnbloomberg.ca/video/tsx-will-hit-20-000-and-beyond-strategist~2213261

Disclaimer: SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIAWM nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.

Colin Cieszynski, Chief Market Strategist
Market Commentary:

Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

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