Canada's main stock index looked set to open higher, with all eyes on the outcome of a meeting where the U.S. Federal Reserve is expected to show it is ready to act against a weakening economy, but stop short of aggressive measures for now.
The S&P/TSX Composite index backpedaled 93.17 points to close Tuesday at 11,664.71. This morning, Canada stock futures traded up 0.3%.
The Canadian dollar gained 0.18 cents Wednesday morning to 99.85 cents U.S.
Among stocks to watch this morning, Talisman Energy Inc, the number-five Canadian independent oil producer, reported a 72% fall in second-quarter profit on low natural gas prices and higher operating costs.
Torstar Corp reported a 68% fall in second-quarter profit citing weak spending by advertisers.
The takeover of Canadian stock market operator TMX Group by a group of financial institutions has been approved by TMX's shareholders, bringing all of Canada's main securities exchanges under a single umbrella.
ON BAYSTREET
The TSX Venture Exchange slipped 1.59 points to 1,182.77. The Nasdaq Canada index faded 3.47 points to 333.79.
ON WALLSTREET
U.S. stocks were headed for a higher open Wednesday, as investors gear up for a spate of economic data ahead of the Federal Reserve's monetary-policy decision.
Futures for the Dow Jones Industrials picked up 42 points, or 0.3%, to 12,991, about 30 minutes before the opening bell.
Futures for the S&P 500 gained 4.2 points, or 4.2%, to 1,378.80, and for the Nasdaq, futures gained 15 points, or 0.6%, to 2,651.50.
The Fed wraps up its two-day meeting Wednesday, and is due to announce the outcome of its latest policy meeting at 2:15 p.m. ET.
Investors are hoping that the central bank will announce some form of stimulus to jumpstart the slowing economy, but expect that it will hold off from more aggressive actions, such as a third round of bond buying, or QE3.
The European Central Bank will take centre stage Thursday, when its Governing Council meets in Frankfurt. Investors are hopeful that the E.C.B. will announce some form of new action, after central bank head Mario Draghi said last week that the institution will do "whatever it takes" to preserve the euro.
European stocks were mixed in afternoon trading. Britain's FTSE 100 added 0.9%, while the DAX in Germany edged down 0.2% and France's CAC 40 ticked up 0.8%.
Manufacturing activity continued to contract across the euro-zone. The Markit Final Euro-zone Manufacturing PMI fell to 44 in July, a more than three-year low but roughly in line with forecasts. Italy's manufacturing activity was at a three-month, while manufacturing activity in Spain rose to a three-month high.
Asian markets ended mixed. The Shanghai Composite rose 0.9% and the Hang Seng in Hong Kong edged higher 0.1%, while Japan's Nikkei lost 0.6%.
Oil for September delivery rose 12 cents to $88.18 U.S. a barrel.
Gold futures for August delivery rose $1.40 to $1,611.90 U.S. an ounce.
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