Market View

Increasing trade tensions between the U.S. and other countries have kept investors on edge. Last week in a tit-for-tat conversation, Trump asked the U.S. trade representative to target $200 billion worth of Chinese products for tariffs. In addition, Trump also raised the possibility of slapping a 20% charge on European cars. Over the past several days, it was also reported that President Donald Trump’s administration plan to block technology exports to China and target all countries “that are that trying to steal our technology”. Trump's administration is set to activate tariffs on Chinese goods worth $34 billion on July 6. Central bank Governor Stephen Poloz has kept markets guessing about a potential interest rate hike next month. 

Despite a roller coaster in the TSX this week, all but two of the TSX subgroups ended higher than last week. The biggest gainers were health care, up 10.1%, technology jumped 4.7% and consumer discretionary was up 4.1%. Energy and materials were down 2.6% and 0.2% respectively. Utilities and consumer staples ended flat week-over-week. Canopy Growth fell 10.1% on Tuesday after disappointing fourth-quarter results. After a long battle, on Thursday, a Minnesota regulator approved a certificate for Enbridge to rebuild its Line 3 oil pipeline, angering environmentalists. Enbridge is up 7% on Friday. The most heavily traded shares by volume were Enbridge, Canopy Growth, and Aurora Cannabis. 

5 from 5i

Here are five reads we found interesting last week:

-Comparing tech stocks today to valuations at the peak of the bubble.

-Alibaba v. Tencent: The fight over Southeast Asia

-Do stocks always triumph bonds?

-The recent memo from Howard Marks discusses Investing without people (it’s a long read, be sure to bookmark it and come back to it later!).

-Don't look now but tech stocks in Canada are on the move.

Have a great Canada day long weekend!