TSX Morning Report — 18 July

MARKET UPDATE [9:00am]

CADUSD -0.44% S&P500 +0.40% S&PTSX +0.15% NASDAQ +0.63%

WTI Crude = -0.71% Gold 0.40% Copper = -0.84%

Stock futures pointed to a higher opening for Canada's main stock index, gaining strength from U.S. Federal Reserve Chairman Jerome Powell’s bullish economic outlook in the previous session. Wall Street futures were little changed ahead of a flurry of corporate results through the day. The U.S. dollar advanced while safe-haven gold tumbled. European shares rose, buoyed by weakness in the euro and a rally in tech stocks. Asian stocks closed mixed. Crude prices slipped after a rise in U.S. crude inventories and concerns over weak demand.

WHAT YOU NEED TO KNOW

EU – Regulators: EU antitrust regulators levied a record 4.34-billion-euro fine against Google for illegal restrictions on Android smartphone makers and mobile network operators.

UK - Pounded: Pound at 10-months low as YoY inflation beats estimate: 2.4% vs 2.6%.

· US – Trump taking advice: Trump said he misspoke saying he meant “wouldn’t” when he said “I don’t see any reason why it would be Russia”. New sanctions are expected to be introduce by the republicans at the house to prevent any interference in November’s crucial mid-term elections.

FED – Powell outlook [FED Testimony - 10:00am] Powell is expected to reiterate that the economy is in a “good place

Markets – Rise MSCI (Asia) +0.4% STOXX (EU) 6000 +0.5%

TODAY’S DRIVERS: NEWS/EARNINGS/RECOMMANDATIONS:

SAP: Australia's Bega Cheese said it has agreed to buy a dairy processing facility at Koroit in Victoria state from Saputo's local arm for A$250 million ($184.5 million). The deal comes four-and-a-half months after Canada's Saputo said it was discussing plans to sell the milk plant to address concerns from Australia's competition watchdog (ACCC) about its buyout of the major milk producer Murray Goulburn.

ARE: SA Energy Group, a 50/50 joint venture between Aecon Group Inc. and Robert B. Somerville Co. Ltd., has been awarded a $282-million contract by Enbridge Pipelines Inc. for spreads 8 and 9 of the Line 3 Replacement phase 2 project in Manitoba.

BBD: Airbus reached its second 60-plane deal in a week for the A220 aircraft (Bombardier C-series rebranded) worth $5.4 Billion Jet Deal for the company JetBlue Airways.

ITP acquiring private company for 146 million

TSGI Issuance of 52 million shares allowed by Ontario court on a share conversion program.

SECOND DAY PLAYS

MOST ACTIVE: NSU (+13.06%, 10M#, on bid from LUN at 4.75$ per share); ACB (-1.12%, 8M#);

TOP GAINER: NSU (+13.06%) TOP LOSER: = CBL (-9.32%, -28% on Business Update {125M loan} 13 July)

— Sources: BLOOMBERG, REUTERS, STOCKWATCH