• U.S. recession fears darken outlook for global growth
Manufacturing growth is slowing from Asia to Europe as China's COVID-19 curbs and Russia's invasion of Ukraine disrupt supply chains, while the growing risk of a recession in the United States poses a new threat to the global economy.
• U.S. oil refiners to meet Biden officials in high-stakes price talks
Major U.S. oil refiners will meet with U.S. Energy Secretary Jennifer Granholm and other Biden officials on Thursday in an emergency meeting about how to lower record-high fuel prices that are squeezing American consumers.
• PREVIEW-G7 hopes to show unity on Ukraine despite darkening economic outlook
The Group of Seven rich democracies will seek to demonstrate their long-term support for Ukraine in its fight against Russian aggression at a summit starting on Sunday even as the war's growing impact on the world economy tests their resolve.
• Bombardier union workers ratify new labor contract
Bombardier said on Wednesday that workers on a key program for the Canadian business jet maker ratified a new labor contract that will deliver pay hikes of up to 18.5% over five years.
• Accenture forecasts fourth-quarter revenue below estimates on forex hit
IT services company Accenture forecast fourth-quarter revenue below expectations, expecting a hit from high inflation and the impact of a stronger dollar on its overseas earnings.
BEFORE THE BELL
Futures for Canada's main stock index rose, tracking Wall Street futures as Federal Reserve Chair Jerome Powell said the U.S. central bank is "strongly committed" to bringing down inflation. European shares dropped after a survey showed euro zone business activity slowed significantly in June, adding to fears of a sharp economic downturn. In Asian equity markets, Chinese stocks rose to a near four-month closing high, while Hong Kong's share benchmark gained, as Chinese tech companies and automakers jumped on Beijing's policy support. Gold prices fell, weighed down by a stronger U.S. dollar. Oil prices tumbled as investors reassessed the risks of recession.
STOCKS TO WATCH
• Bombardier Inc: The company said on Wednesday that workers on a key program for the Canadian business jet maker ratified a new labor contract that will deliver pay hikes of up to 18.5% over five years. The new contract will cover an estimated 1,800 workers, who mostly produce Bombardier's popular Challenger business jets, which accounted for a third of the company's deliveries in 2021.
• Brookfield Asset Management Inc: Brazil's antitrust watchdog has given an investment fund managed by Canada's Brookfield the greenlight to purchase assets from rental car companies Localiza and Unidas, the firms said on Wednesday. The sale was ordered by the antitrust regulator in late 2021 as a condition for the merger between Localiza Rent a Car SA and Unidas, formally known as Companhia de Locacao das Americas. They now expect to close their merger on July 1, according to a joint securities filing.
In Canada, hot inflation opens rare attack on central bank
The Bank of Canada has come under a rare attack from critics after misjudging inflation and locking itself into rigid forward guidance that prevented it from reacting swiftly as prices surged and Canada's economy began to overheat.
• AGF Management Ltd: Scotiabank raises target price to C$8 from C$7.75, as the company's second-quarter results reflected a relatively solid operational performance on a number of fronts despite challenging industry conditions.
• Empire Company Ltd: National Bank of Canada cuts target price to C$42 from C$48, viewing its fourth quarter results to be unfavourable given the negative same store sales growth, and probable market share loss.
No economic indicators are scheduled for release.
COMPANIES REPORTING RESULTS
Aleafia Health Inc: Expected Q1 loss of 2 Canadian cents per share
BlackBerry Ltd: Expected Q1 loss of 5 cents per share
Evertz Technologies Ltd: Expected Q4 earnings of 17 Canadian cents per share
No major companies are scheduled to report for the day.
CORPORATE EVENTS (All timings in U.S. Eastern Time)
0800 Medexus Pharmaceuticals Inc: Q4 earnings conference call
0830 Aleafia Health Inc: Q1 earnings conference call
0830 Aleafia Health Inc: Shareholders Meeting
0830 Neighbourly Pharmacy Inc: Q4 earnings conference call
0900 Polaris Infrastructure Inc: Annual Shareholders Meeting
1000 Globex Mining Enterprises Inc: Annual Shareholders Meeting
1000 McCoy Global Inc: Annual Shareholders Meeting
1000 Wesdome Gold Mines Ltd: Annual Shareholders Meeting
1030 Global Atomic Corp: Annual Shareholders Meeting
1100 Converge Technology Solutions Corp: Annual Shareholders Meeting
1100 Cronos Group Inc: Annual Shareholders Meeting
1100 Orla Mining Ltd: Annual Shareholders Meeting
1130 United Corporations Ltd: Annual Shareholders Meeting
1200 Pipestone Energy Corp: Annual Shareholders Meeting
1300 Filo Mining Corp: Annual Shareholders Meeting
1300 Nevada Copper Corp: Annual Shareholders Meeting
1300 Solaris Resources Inc: Annual Shareholders Meeting
1600 Dundee Corp: Annual Shareholders Meeting
1630 Tidewater Midstream and Infrastructure Ltd: Annual Shareholders Meeting
1700 Evertz Technologies Ltd: Q4 earnings conference call
1700 Nexgen Energy Ltd: Annual Shareholders Meeting
1700 Northern Dynasty Minerals Ltd: Annual Shareholders Meeting
1700 STEP Energy Services Ltd: Annual Shareholders Meeting
1730 BlackBerry Ltd: Q1 earnings conference call
1800 Valeura Energy Inc: Annual Shareholders Meeting
Aecon Group Inc: Amount C$0.18
Canadian Pacific Railway Ltd: Amount C$0.19
goeasy Ltd: Amount C$0.91
Pembina Pipeline Corp: Amount C$0.21
(All analysts' estimates are according to I/B/E/S Refinitiv data.)