Luke KawaThe Globe and Mail
The Before the Bell report is updated throughout the premarket to reflect the latest news developments and market moves. Check back later for updates.
U.S. and Canadian equity futures are trading to the downside ahead of the open and the Federal Reserve's rate announcement this afternoon.
The robust improvement in the United States' labour market may prompt the end of near-zero interest rate policy sooner than many market participants anticipate.
The Federal Reserve is widely expected to give a nod to these developments by dropping the word "patient" from its statement, indicating that a rate hike is on the table as early as June. Updated forecasts from members of the Federal Open Markets Committee will accompany this release, and Chair Janet Yellen will host a press conference in the afternoon.
"Of course, most of the commentary today will be around the FOMC meeting but it's important to remember that tightening will happen eventually," said IG market strategist Stan Shamu. "Unfortunately, the later it happens, the faster it'll potentially happen."
After a decent rally on Tuesday afternoon, West Texas Intermediate futures are falling ahead of the oil inventories report, which is expected to show that stockpiles rose for yet another week. The April contract in New York is down more than 2 per cent and hit a fresh six-year low of $42.05 (U.S.) per barrel overnight.
Across the pond, the minutes from the Bank of England's latest meeting revealed that monetary policymakers were unanimous in their desire to maintain the current stance. Later this morning, Chancellor George Osborne will present the government's latest budget.
European equities were broadly lower outside of the FTSE 100.
In Asia, Chinese stocks continued to advance despite softness in real estate values amid hopes of monetary and fiscal stimulus.
Here's a look at the latest market numbers and other highlights ahead of the trading day.
Futures:
Futures:
S&P 500 -0.37 per cent; Dow -0.48 per cent; Nasdaq -0.33 per cent
Equities:
Hong Kong's Hang Seng +0.91 per cent
Shanghai composite index +2.13 per cent
Japan's Nikkei +0.55 per cent
London's FTSE 100 +0.65 per cent
Germany's DAX -0.76 per cent
France's CAC 40 -0.15 per cent
Stoxx 600 -0.13 per cent
Commodities:
WTI crude oil (Nymex Apr) -2.42 per cent at $42.41 (U.S.) a barrel
Natural gas (Nymex Apr) -1.51 per cent at $2.812
Gold (Comex Apr) +0.04 per cent at $1,148.70 (U.S.) an ounce
Copper (Comex May) -2.16 per cent at $2.576 (U.S.) a pound
Currencies:
Canadian dollar at 78.09 (U.S.), down 0.0011
U.S. dollar index flat at 99.585
Bonds:
U.S. 10-year Treasury yield 2.0226 per cent, down 0.0263
ECONOMIC INDICATORS:
Canada wholesale trade fell by 3.1 per cent in January, the largest monthly drop since January 2009 and lower than the consensus estimate for a 1.5 per cent decline.
(10:30 a.m. ET) EIA petroleum status report.
(2 p.m. ET) U.S. Federal Open Market Committee (FOMC) meeting announcement.
(2:30 p.m. ET) U.S. Fed chair press conference.
(2:30 p.m. ET) U.S. FOMC forecasts.
STOCKS TO WATCH:
Talisman Energy Inc. is cutting up to 15 per cent of staff at its head office in light of the collapse in crude oil prices.
Pacific Rubiales Energy Corp. said it would suspended paying dividends and that lenders had agreed to relax their terms, helping the company shore up funds to weather the slump in oil prices.
Alibaba Group Holding Inc. has entered the end of its lock-up period today, which gives insiders the opportunity to sell shares in the Chinese e-commerce company. Shares are about 1 per cent lower in the premarket.
FedEx reported Q3 EPS of $2.01 (U.S.) versus the Street estimate of $1.88. Its forward guidance, however, came in below Street expectations. Shares are down 1 per cent in the premarket.
General Mills reported adjusted Q3 EPS of 70 cents (U.S.) versus expectations for 67 cents.
Kraft Foods Group Inc. is recalling over 200,000 cases of of its macaroni and cheese dinner, saying that there is a chance these packages contain small metal fragments. Canada did not receive any of the recalled shipments.
Other earnings include: AirBoss of America, New Flyer, Power Corp. of Canada, Power Financial, Silver Wheaton, TSO3, Village Farms, Cintas Corp., E-Commerce China Dangdang Inc., Guess Inc., Herman Miller Inc., Shoe Carnival Inc., Smart & Final Stores Inc., Tilly's Inc., Trevena Inc., Williams-Sonoma Inc.
ANALYST ACTIONS:
Encana Corp. was upgraded to "buy" from "hold" at Desjardins Securities.
Alimentation Couche-Tard Inc. was raised to "buy" from "hold" at Desjardins Securities.