By James Langton

(June 20 – 09:00 ET) – In Canada the international merchandise trade balance slipped to $3.2 billion from $3.9 billion, economists were expecting it to slide to $3.4 billion, but the number is generally on target and should cause little market reaction.

Both exports and imports slipped in April, led by the automotive sector. Wholesale sales were nearly unchanged, down 0.2%.

In the U.S., the international trade deficit for April is up to US$30.4 billion, consensus was for it to narrow slightly to US$25.9 billion from US$30.2 billion. Market reaction was muted but generally the number is not good for the U.S. economy.

In Europe stocks are all to the good with M&A news driving the buying. London’s FTSE is up 31 points to 6,521. France’s CAC 40 is up 67 points to 6,572. Germany’s DAX has added 49 points to 7,247.

The big news is of course that Vivendi SA has finally agreed to buy Seagram Co. for about US$46 billion in stock, creating one of the world’s biggest media companies.

Another hotly rumoured deal is done with Publicis SA of France buying Saatchi & Saatchi Plc for US$1.9 billion in stock.

European Central Bank president Wim Duisenberg reinforced expectations the ECB will keep interest rates on hold in coming weeks.

Markets were mixed in Asia overnight. Japan rose, with the Nikkei closing up 316 points to 16,907. The Hang Seng closed on the downside by 181 points to 16,086.

In other news Corel will announce its Q2 results after the close today. The firm has already warned of a loss.