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TSX Set to Open Higher Amid Anticipation of Fed Rate Hike

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Canada's benchmark index is headed for a strong start on Wednesday amid expectations of a rate hike in the U.S. Gains, however, could be limited by falling oil prices .

Stock futures for the December quarter on the S&P TSX index were 0.12% higher recently.

The U.S. Federal Reserve ends its two-day policy meeting on Wednesday, the last one for the current year, and investors are bracing for an initial increase of 25 basis points in key rates. If the move would push through, this would be the first increase since 2006 and would signify that the world's largest economy had recovered from the devastating blow of the global financial crisis. The bank will release a statement at 2pm ET.

Meanwhile, oil prices were lower due to growing global oversupply and could hurt energy stocks during the session. Brent crude was last down 1.8% at US$37.77/barrel, while the WTI slipped 0.5% to US$37.16/barrel.

The TSX closed Tuesday 224 points higher, led by healthcare and energy stocks.

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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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