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The Before the Bell report is constantly updated to reflect the latest news developments and market moves in the premarket. Check back later for updates.

Major U.S. and Canadian stock indexes look set to open weaker, as investors continue to shun risk in the lead up to Wednesday's monetary policy statement from the Federal Reserve.

Futures in the premarket suggest the Nasdaq could again suffer the steepest losses, extending the 1 per cent drop on Monday, as tech and small-cap stocks fall out of favour amid speculation that the Federal Open Market Committee will deliver hawkish signals when its two-day policy meeting wraps up Wednesday. Nasdaq-listed stocks could take the biggest hit as the Fed starts tightening monetary policy, as investors may gravitate to less high-flying large-cap names with more reasonable valuations and are at less risk of a correction.

Almost all major overseas markets are in the red this morning as well, although losses are relatively modest. The Stoxx 600 broad index of European stocks is down about 0.5 per cent, as investors there brace for the results of the Scottish referendum later this week, which is still too close to call based on recent polling. It's creating a dose of uncertainty at a time when the euro economy is looking lacklustre. More evidence of that came today, when Germany released its ZEW economic sentiment index, dropping to its lowest level since December 2012. The reading of 6.9, however, beat analyst expectations.

Now, here's a closer look at what's going on this morning and what's to come.

MARKETS:

Equities:

Futures: S&P 500 -0.13 per cent; Dow -0.15 per cent; Nasdaq -0.20 per cent; S&P/TSX -0.31 per cent

Hong Kong's Hang Seng -0.91 per cent

Shanghai composite index -1.8 0 per cent

Japan's Nikkei -0.23 per cent

London's FTSE 100 -0.64 per cent

Germany's DAX -0.35 per cent

France's CAC 40 -0.44 per cent

Stoxx 600 -0.56 per cent

Commodities:

WTI crude oil (Nymex Oct) -0.24 per cent at $92.70 (U.S.) a barrel

Gold (Comex Dec) +0.41 per cent at $1,240.20 (U.S.) an ounce

Copper (Comex Dec) +0.53 per cent at $3.10 (U.S.) a pound

Currencies:

Canadian dollar at 90.44 (U.S.), down 0.0002

U.S. dollar index down 0.03 at 84.23

Bonds:

U.S. 10-year Treasury yield 2.56 per cent, down 0.03

ECONOMIC INDICATORS:

Canada manufacturing sales in July rose 2.5 per cent from June, well ahead of expectations for a 1.1 per cent gain.

U.S. producer price index for August was flat from July, matching Street expectations.

(1230 p.m. ET) Bank of Canada Governor Stephen Poloz to speak in Drummondville, Quebec, on "The role of a floating exchange rate in the Canadian economy and in the Bank's policy framework." He holds a news conference at 145 p.m. (ET).

FOMC meeting begins.

STOCKS TO WATCH:

Banco Santander SA, Spain's biggest bank, agreed to buy car-financing company Carfinco Financial Group for about $298-million.

Power producer Atlantic Power Corp. slashed its dividend by 70 per cent and asked its chief executive to step down as part of a strategic review process. It said it would not sell itself at this time.

The company said it appointed Ken Hartwick, director of the board, as a replacement for Barry Welch.

Allergan and its suitors Pershing Square Capital Management and Valeant Pharmaceuticals Inc settled their pending litigation before the Delaware Court of Chancery and agreed to hold a special shareholder meeting on the originally scheduled date, Dec. 18.

Earnings today include: Student Transportation; Adobe Systems.

ANALYST ACTIONS:

Raymond James upgraded WestJet Airlines to "strong buy" from "outperform" and hiked its price target to $41.50 (Canadian) from $37.50.

M Partners upgraded Golden Queen Mining to "buy" from "hold" and kept a $1.70 (Canadian) price target.

RBC Dominion Securities initiated coverage on Intertape Polymer Group with an "outperform" rating and $19 (Canadian) price target.

Clarus Securities initiated coverage on Great Prairie Energy Services with a "buy" rating and 80 cents (Canadian) price target.

RBC Dominion Securities upgraded Microsoft to "outperform" from "sector perform" with a 12-month price target of $54 (U.S.).

RBC Dominion Securities downgraded Adobe Systems to "sector perform" from "outperform" with a 12-month price target of $82 (U.S.).

THIS MORNING'S TOP READS ON THE WEB:

Market reaction to the Fed hinges on these two words.

What you need to know about foreign withholding taxes in international equity ETFs.

Alibaba has already landed a punch on Amazon.

Bill Ackman has set in motion plans to raise billions of dollars outside the United States.

Yahoo's time as an Alibaba proxy is running out.

What active fund investors are doing wrong.

One on one with investing guru (and former Pimco CEO) Mohamed El-Erian.

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For instant headlines on breaking economic and corporate news in the premarket, follow Darcy Keith on Twitter at @eyeonequities.

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