TOP NEWS
• Fed to hold rates steady, but signal policy path in meeting this week
The U.S. Federal Reserve kicks off a two-day policy meeting with officials widely expected to keep interest rates on hold for now, but also flagging in new economic projections whether they feel rates still need to rise further before the end of the year.
• Canada's Trans Mountain pipe expansion to disrupt oil flow to US, boost prices
Canada's Trans Mountain oil pipeline expansion (TMX), which will nearly triple the flow of crude from Alberta to Canada's Pacific Coast beginning early next year, will shake up North America's supply by diverting barrels now mainly delivered to refiners and exporters in the U.S. Midwest and Gulf Coast.
• India rejects Canada's suspicions on role in Sikh leader's murder
Canadian Prime Minister Justin Trudeau said authorities were "actively pursuing credible allegations" linking New Delhi's agents to the murder of a Sikh separatist leader, a concern India dismissed as "absurd".
• UAW prepares for more US auto strikes; Ford Canada talks extended
The United Auto Workers union said it would announce on Friday more U.S. plants to strike if no serious progress was made in talks with the Detroit Three automakers, as a Canadian union held off on an immediate walkout at Ford's operations in Canada.
• Google in last ditch effort to overturn $2.6 billion EU antitrust fine
Alphabet's Google made a last ditch effort at Europe's top court to overturn a $2.6 billion EU antitrust fine imposed for market abuse related to its shopping service, saying that regulators failed to show that its practices were anti-competitive.
BEFORE THE BELL
Futures for Canada's main stock index were subdued as traders awaited domestic inflation data for more clues on Bank of Canada's interest-rate path. U.S. stock index futures inched higher ahead of a two-day Federal Reserve monetary policy meeting and as investors awaited Instacart's Nasdaq debut to assess a potential recovery in the IPO market. European shares edged higher in choppy trading as cautious investors eyed a slew of central bank decisions this week, while Germany's DAX lagged regional peers as weakness in industrial stocks weighed. Japan's Nikkei share average closed lower, with chip-related stocks leading the decline. Gold prices hit a two-week high as the U.S. dollar eased from a six-month peak, with markets braced for a new set of economic forecasts from the Fed. Oil prices rose for a fourth consecutive session as weak U.S. shale output spurred further concerns about a supply deficit stemming from extended production cuts by Saudi Arabia and Russia.
STOCKS TO WATCH
• Enbridge Inc: Canada's Trans Mountain oil pipeline expansion (TMX), which will nearly triple the flow of crude from Alberta to Canada's Pacific Coast beginning early next year, will shake up North America's supply by diverting barrels now mainly delivered to refiners and exporters in the U.S. Midwest and Gulf Coast. Its startup could add as much as $2 per barrel to prices paid by U.S. Midwest oil refineries that sit along Canada's existing main oil-export route. Plants that benefited from discounted oil include those operated by BP, Citgo Petroleum, Exxon Mobil and Koch Industries' Flint Hills Resources, analysts said. Pipeline operator Enbridge, which ships the bulk of Canada's 3.8 million bpd of crude exports to the U.S., expects to see flows on its Mainline system drop by up to 300,000 bpd once TMX opens.
FOCUS
Energy giants place tentative bets on oil finds in 'wildcat' Uruguay
Uruguay state-run energy firm Ancap is set to agree to final terms for a record number of seven offshore exploration licenses next month, a senior executive told Reuters, as the frontier market lures bets from global players like Shell.
ANALYSTS' RECOMMENDATION
• Canadian National Railway Co: RBC cuts target price to C$163 from C$165, noting that negative lag impact from higher fuel prices may affect the company’s third-quarter earnings.
ECONOMIC EVENTS (All timings in U.S. Eastern Time)
0830 CPI inflation mm for Aug: Expected 0.3%; Prior 0.6%
0830 CPI inflation yy for Aug: Expected 3.8%; Prior 3.3%
0830 CPI BoC core yy for Aug: Prior 3.2%
0830 CPI BoC core mm for Aug: Prior 0.5%
0830 CPI mm SA for Aug: Prior 0.5%
0830 Core CPI mm SA for Aug: Prior 0.3%
0830 CPI median for Aug: Prior 3.7%
0830 CPI trim for Aug: Prior 3.6%
0830 CPI common for Aug: Prior 4.8%
0830 CPI NSA for Aug: Prior 158.1
0830 CPI yy SA for Aug: Prior 3.28%
CORPORATE EVENTS (All timings in U.S. Eastern Time)
1000 mdf Commerce Inc: Annual Shareholders Meeting
1000 Dialogue Health Technologies Inc: Shareholders Meeting
EXDIVIDENDS
Cargojet Inc: Amount C$0.28
Olympia Financial Group Inc: Amount C$0.60
Restaurant Brands International LP: Amount $0.55
(All analysts' estimates are according to I/B/E/S Refinitiv data)
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