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TSX May Open Lower with Oil

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Canada's benchmark index looked set to open lower on Wednesday, with oil prices taking a beating from record-high output.

Stock futures for the December quarter on the S&P TSX index were down 0.02% recently.

Action Economics said the market remains skeptical over OPEC's ability to cut production. Record output continues for now, destined for storage, which will keep OPEC exports strong through much of 2017. That, when combined with additional production from the likes of Nigeria, and Libya - both exempt from cuts, and an expected increase in U.S. shale production, could well see supply continue to outstrip demand through much of 2017.

Meanwhile, financial strategists expect Canada's main stock index to rise more slowly in 2017 but to reach an all-time high by the end of next year if U.S. President-elect Donald Trump's tax and spending plans boost economic growth, a Reuters poll found. But risks to that outlook have multiplied, the respondents said, citing Trump's protectionist talk on trade, a sharp jump in global bond yields, and Canada's wobbly domestic economy as reasons for caution.

The TSX gained 30 points on Tuesday, with financials leading the advance.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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