By James Langton

(September 20 – 09:00 ET) – Canadian international merchandise trade numbers for July were released this morning. The value of both exports and imports dropped in the month, after reaching record levels in recent months.

Exports declined 2.9% to $34.5 billion, and imports declined 0.4% to $30.3 billion. The exports were constrained by lighter sales of passenger vehicles and communications equipment. Imports were hit by fewer auto parts coming in.

Statistics Canada also says wholesale trade numbers recorded the third straight monthly increase. Total wholesale sales were $32.3 billion, up 0.6% from June.

The U.S. international trade deficit was also reported this morning, it came at US$31.9 billion, ahead of expectations. The number didn’t do much to roil markets, but the Fed’s Beige Book out this afternoon may catch more attention.

In the meantime stocks are down in Europe with the euro weakness and high oil prices the culprits once again. Nokia is down on profit taking, and the tech and telecom sector is indicated down. The FTSE dropped 39 points to 6,364. The CAC 40 is off 22 points to 6,508. The DAX is down 31 to 6,907.

Crude oil prices rose more than 2% in New York, after a report showed that heating oil inventories are static at their present low level.

In M&A news, ADC Telecommunications Inc. is buying rival Broadband Access Systems for US$2.25 billion in stock. Thames Water plc, the U.K.’s largest water and waste-services company, said it has received a US$6 billion cash offer from an unidentified suitor. The stock is down on the news.

Overnight in Asia stocks closed mixed. The Nikkei rallied impressively, closing up 334 points to 16,458. The Hang Seng slipped, closing down 11 points to 15,665.