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Noah Zivitz

Managing Editor, BNN Bloomberg

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If the S&P/TSX Composite Index closes higher today for a seventh consecutive session, it will mark the longest stretch of gains since last October, when the index went on a 14-session streak. Perspective is important: despite its rally, the TSX is still six per cent below the all-time high it reached on March 29. So, on a day when U.S. markets are closed and global commodity prices are rallying amid a burst of optimism about China’s COVID situation, we’ll gather insight from investment professionals about the recent rally, how much further it can go, and where the best buying opportunities are. That starts with Lyle Stein from Forvest Global Wealth Management at 8 a.m.

GEARING UP FOR BANK OF CANADA DECISION

The central bank is widely expected to announce a second consecutive half-point rate hike Wednesday, which will (almost) immediately hit borrowers with variable-rate mortgages and other loans tied to prime rates. The Canadian dollar has been on a roll heading into the policy meeting, and touched its highest level since April 22 this morning.
 
EU LEADERS AT LOGGERHEADS OVER RUSSIAN OIL

It’s been almost a month since the European Commission laid the groundwork to phase out imports of Russian oil — or so it thought. Leaders from the European Union begin two days of talks in Brussels today without a consensus on the timeline or mechanics for weaning themselves off those imports. Our Bloomberg News partners reported yesterday that Hungary is still refusing to sign off on the latest package of proposed sanctions, even though the European Commission attempted to appease the holdout nation by limiting the Russian oil ban to imports-by-sea.       

OTHER NOTABLE STORIES

  • Glencore has a strike on its hands in Northern Quebec. The Syndicat des Métallos/United Steelworker union announced Saturday that 630 workers at the company’s Raglan mine have gone on strike. In a release, the union cited working conditions and what it described as “increased use” of subcontractors for the walk out. According to information on Glencore Canada’s website, Raglan produced 39,320 tonnes of nickel in 2020, as well as almost 9,000 tonnes of copper and 827 tonnes of cobalt.
  • Canadians’ confidence in home-price growth is continuing to erode. In the latest Nanos Canadian Confidence Index for Bloomberg, 51.6 per cent of respondents said they expect real estate prices will rise. A month ago, 60.8 per cent of respondents said they thought prices will rise.

 NOTABLE RELEASES/EVENTS

  • Notable data: Canadian current account balance and StatsCan survey on business conditions
  • 1015: Industry Minister François-Philippe Champagne makes announcement in Mirabel, Que., "that will benefit the aerospace industry in Canada and support the Canadian Armed Forces"
  • 1030: Tourism Industry Association of Canada CEO Beth Porter and Tourism Minister Randy Boissonnault hold news conference in Ottawa to launch tourism week 2022 (NOTE: somewhat related, the transport minister said 400 airport screening officers are currently in training and expected to be in service by end of June)
  • 1630: Prime Minister Justin Trudeau makes announcement alongside ministers of public safety, justice, women and gender equality, and emergency preparedness.