TOP NEWS
• Investors fly blind as key Bank of Canada inflation gauge misfires
Canadian economists are scrambling for a reliable measure to track underlying inflation as large and frequent revisions have dented the credibility of a key Bank of Canada yardstick, even as the central bank said it was sticking with its core measures.
• HSBC eyes sale of Canada business
HSBC is considering selling its Canada business, one of the biggest international banking brands in the country, a spokesperson for the bank said, as it looks to beef up returns pressed for by its largest shareholder.
• U.S. Treasury seeks phased G7 oil sanctions as EU ban looms
G7 sanctions on Russia will target its oil and products in three phases, senior U.S. treasury official Ben Harris said on Tuesday, as the bloc seeks to limit unintended economic damage while curbing Moscow's funds to wage war in Ukraine.
• Top EU officials call for joint borrowing to deal with energy crisis
Two top European Commission officials called for joint borrowing by the 27-nation European Union to finance a response to the energy price crisis that is threatening to plunge the bloc into recession.
• Boeing doesn't expect MAX 10 to gain FAA approval before summer 2023 -letter
Boeing does not anticipate winning approval for the 737 MAX 10 before next summer, according to a Federal Aviation Administration (FAA) letter sent on Monday that intensifies concerns about the company's timeline for deliveries.
BEFORE THE BELL
Futures tracking Canada's main stock index jumped, supported by oil prices, which gained ahead of the OPEC+ meeting to discuss supply cuts. Wall Street futures were higher as retreating U.S. Treasury yields bolstered demand for stocks, while investors await the job openings and factory orders data due later in the day for clues on how much further the Fed would go with interest rate hikes. European shares rose sharply in a broad-based rally, led by chipmakers, travel and leisure companies. Japan's Nikkei jumped nearly 3% to record its best session in more than six months. A weaker U.S. dollar pushed gold prices up.
ANALYSIS
Global metals volumes slide on recession fears, volatile markets
Industrial metal trading volumes have fallen across the world and may slide further as economic threats from higher interest rates to the war in Ukraine send buyers, especially in leading consumer China, to the sidelines.
ANALYSTS' RECOMMENDATION
• Arizona Sonoran Copper Company Inc: Canaccord Genuity raises target price to C$3.50 from C$2.75, following the release of a robust maiden inferred resource on the Parks-Salyer deposit.
• Canfor Corp: CIBC cuts rating to neutral from outperformer, to reflect lower volume assumptions and higher unit costs for next year.
• Definity Financial Corp: Scotiabank raises target price to C$39 from C$36, after the company acquired a majority stake in McDougall Insurance.
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