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Bay Street Seen Opening On Positive Note

Higher Canadian and U.S. futures and rising crude oil and gold prices point to a fairly positive start for Canadian shares Wednesday morning.

Optimism about coronavirus vaccines may also support the market.

The focus will be on the U.S. Federal Reserve's monetary policy announcement, due this afternoon.

In Canadian economic news, the annual inflation rate was at 0.1% in August 2020, the same as in the previous month and below market expectations of a 0.4% increase Month-on-month, consumer price index decreased 0.1% in August. Core consumer prices increased 0.8% in August of 2020 over the same month in the previous year.

The Organization for Economic Cooperation and Development (OECD) has raised its global economic forecast for 2020 as output picked up swiftly following the easing of confinement measures and the initial re-opening of businesses.

According to the interim economic outlook report, released Wednesday, the global economy will shrink 4.5% this year instead of 6% fall estimated in June. Meanwhile, the growth projection for 2021 was revised down to 5% from 5.2%.

However, the agency cautioned that the outlook is subject to considerable uncertainty and projections are dependent on assumptions about the spread of the Covid-19 virus and policy developments.

Crude oil futures for October are up $0.85 or 2.22% at $39.13 a barrel after data from American Petroleum Institute showed a sharp drop in U.S. crude stockpiles in the week ended September 11. The EIA's inventory data is due out at 10.30 AM ET.

Gold futures are rising $9.40 or about 0.5% at $1,975.60 an ounce on weaker dollar. Silver futures are up $0.126 at $27.590 an ounce, while Copper futures are modestly lower at $3.0570 per pound.

Asian markets ended mixed on Wednesday. European stocks moved up after a flat start, but turned mixed past noon with investors turning cautious as they looked ahead to the Federal Reserve's policy announcement.

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