TSX Morning Report - 17 JULY

Stock futures pointed to a lower opening for Canada's main stock index ahead of a report on the country's May manufacturing sales. Wall Street futures dipped, and the U.S. dollar edged lower as investors anxiously await Federal Reserve Chair Jerome Powell’s congressional testimony to the U.S. Congress for possible clues on the outlook for U.S. interest rates. Global shares recovered some ground, but were mostly in the red, as crude pared losses. Gold prices rose.

WHAT YOU NEED TO KNOW

· US – Under Pressure: Donald Trump’s post-meeting press conference with Russian leader Vladimir Putin has provoked the most intense backlash from congressional members of the Republican Party.

· UK – Under Pressure: Theresa May saw her parliamentary majority cut to just 3 votes after amendments to a key piece of customs legislation tabled by euroskeptic Tory-party members narrowly passed. It is becoming increasingly unclear she will retain sufficient support in parliament to win a vote on a final Brexit deal.

· FED – Powell outlook At 10:00am Powell is expected to reiterate that the economy is in a “good place

· Goldman – Best Q2 9Y & new CEO : Earnings beats estimates with EPS 4.56$ +51% ; David Salomon replaces legendary Llyod Blankfeid as CEO (1^st Oct)

· Oil – Slip: Goldman Sachs warned in a note to clients that U.S. political decisions are helping make volatility the new normal in oil markets.

TODAY’S DRIVERS: NEWS/EARNINGS/RECOMMANDATIONS:

LUN/NSU: The miner said on Monday it plans to make an offer to buy base metals company Nevsun Resources for about C$1.4 billion, its second proposal in three months. Lundin offered C$4.75 per share, a premium of 12.8 percent to Nevsun's closing price of C$4.21 on Monday, but less that a previous 5.00$ offer 1 month ago.

SECOND DAY PLAYS

MOST ACTIVES: ACB (-6.50%); BTE (-5.52%); APH (-7.23%); HEXO (-8.58%);

TOP LOSERS: = GUY (-21.78%) ASO (-15.04%)

Sources: BLOOMBERG, REUTERS