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Bay Street Likely To Open On Cautious Note

The Canadian stock market is expected to open on a cautious note on Wednesday with investors looking ahead to the U.S. Federal Reserve's monetary policy.

Data on Canadian inflation for the month of May will also make an impact on price movements.

The Federal Reserve is unlikely to cut interest rate this month. The accompanying statement is expected to provide clues about the likely timing of an interest rate cut later this year.

On Tuesday, the Canadian benchmark S&P/TSX Composite Index ended with a gain of 149.90 points, or 0.92%, at 16,503.35, after scaling a high of 16,527.28.

In company news, SNC-Lavalin (SNC.TO) announced that its its Atkins business has been selected as part of the team to provide systems engineering services and support to the Los Angeles County Metropolitan Transportation Authority as part of a 10-year program.

CannTrust Holdings Inc. (TRST.TO) announced that it is establishing operations in the United States, starting in the State of California. CannTrust has signed a non-binding letter of intent that will provide access to over 3,000 acres of farmland for hemp production with Elk Grove Farming Company, LLC, to secure low-cost hemp with high cannabidiol content.

Asian markets ended with strong gains on Wednesday, tracking overnight gains in U.S. and European markets after ECB President Mario Draghi suggested more stimulus and U.S. President Donald Trump hinted at an "extended" meeting with Chinese President Xi Jinping at the G20 summit in Japan next week.

European stocks were turning in a mixed performance with investors looking ahead to the Federal Reserve's monetary policy statement. Profit taking after a strong rally on Tuesday contributed as well to the somewhat sluggish movements in European markets.

In commodities, crude oil futures for July were up slightly at $53.93 a barrel.

Gold futures for August were declining $5.20, or 0.37%, at $1,345.50 an ounce.

Silver futures for July were down $0.083, or 0.55%, at $14.910 an ounce, while Copper futures were lower by $0.0165, or 0.61%, at $2.6865 per pound.

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