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A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 24, 2016.

The Before the Bell report is compiled by editors of The Globe and Mail and is updated throughout the morning to reflect latest developments. Colin Cieszynski will return.

U.S. and Canadian equity index futures are trading on both sides of unchanged this morning, signaling the S&P 500 will struggle to continue its post-Brexit recovery after the biggest two-day surge in four months put it back on track for a quarterly advance.

Among companies moving in premarket trading, Bank of America Corp., Goldman Sachs Group Inc. and Citigroup Inc. added at least 1.3 per cent as they raised dividends and said they will buy back shares after passing the Federal Reserve's annual stress tests.

A global rally lifted equities in the past two days, returning the S&P 500 to an annual advance, as central banks reassured investors that they're ready to increase stimulus after the U.K.'s vote. The aftermath of the referendum had sparked a two-day selloff that wiped as much as $3.6 trillion from stocks worldwide.

"Though it's been a very swift and broad recovery, I do think investors will get more selective now," said Justin Urquhart Stewart, London-based co-founder of Seven Investment Management, which oversees the equivalent of about $13 billion. "Central banks did well to react so quickly to the Brexit vote -- that's avoided any panic. But the path from here is very uncertain. You can justify a continued recovery for U.S. stocks because the timeline for tighter monetary policy was completely altered overnight."

While the turmoil interrupted the S&P 500's march to an all-time high -- a move propelled by optimism over a combination of low rates and moderate growth -- it has also prompted traders to push back bets on the Fed raising borrowing costs any time soon. They now indicate a rate hike is unlikely before 2018. The S&P 500 remains 2 per cent below its June 23 level, after coming within 1 per cent of a record twice this month.

A fourth straight decline today for the Chicago Board Options Exchange Volatility Index pushed the measure of market turbulence known as the VIX to a three-week low.

Britain is in limbo as its leaders fight to succeed David Cameron as Prime Minister, and a majority of economists surveyed by Bloomberg predict that the Bank of England will add more stimulus, including cutting rates this year. Governor Mark Carney will address the press and finance industry at 4 p.m. in London. Separately, St. Louis Fed President James Bullard is also scheduled to speak in the British capital later today.

The S&P 500 is down 1.3 per cent in June, poised for its biggest monthly decline since January. That's trimmed its third quarterly advance to 0.5 per cent. Energy producers have been the biggest gainers in the three-month period, while technology shares tumbled the most.

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

MARKET DATA: (as of approx 830 a.m. ET)

Futures

Dow -0.04 per cent; S&P 500 -0.10 per cent; Nasdaq: -0.15 per cent; TSX 60: -0.05 per cent

Equities
Japan's Nikkei +0.06 per cent
Shanghai composite index -0.07 per cent
Hong Kong's Hang Seng +1.75 per cent 
Germany's DAX -0.26 per cent
London's FTSE -0.08 per cent
France's CAC 40 +0.11 per cent

Commodities
WTI crude oil (Nymex Aug) -1.72 per cent at $49.02 (U.S.) a barrel
Gold (Comex Aug) -0.54 per cent at $1,319.80 (U.S.) an ounce
Copper (Comex July) +0.16 per cent at $2.1895 (U.S.) a pound

Currencies
Canadian dollar +0.11 at 77.33 cents (U.S.)
U.S. dollar index -0.277 at 95.492

Bonds
Canada 10-year bond yield +0.005 at 1.133 per cent

KEY ECONOMIC RELEASES

Canadian April GDP rose 0.1 per cent month over month vs. an estimated 0.1 per cent gain. On a year over year basis, GDP rose 1.5 per cent vs. an estimated 1.4 per cent gain.

U.S. jobless claims increased 10,000 to 268,000, which was largely tied to the end of the school year. Economists polled by Reuters had forecast initial claims rising to 267,000 in the latest week. Claims have now been below 300,000, a threshold associated with a strong jobs market, for 69 consecutive weeks, the longest streak since 1973.

KEY STOCKS TO WATCH

Lionsgate has agreed to acquire Starz for a combination of cash and stock totaling $4.4 billion, creating a global film and television content giant.

Laurentian Bank of Canada  says it will acquire the Canadian equipment financing and corporate financing activities of CIT Group Inc., a portfolio it says is valued at about $1-billion.

Superior Plus says it's no longer planning to buy Canexus Corp. through a friendly takeover that would have combined two of Canada's largest industrial chemical companies.

ConAgra Foods Inc on Thursday reported a 9.5 percent drop in quarterly net sales, missing analysts' estimates, as demand weakened for its consumer foods, which include Chef Boyardee pasta and Hunt's ketchup. Shares of ConAgra fell 2.7 per cent in premarket trading.

Citigroup, Bank of America, Goldman Sachs and JPMorgan rose over 1 percent in premarket trading, after the Fed cleared the path for them to increase shareholder payouts after its annual stress test. Morgan Stanley gained the least after its capital planning process received some criticism.

Earnings include: ConAgra Foods Inc.; Constellation Brands Inc.; Darden Restaurants Inc.; McCormick & Company Inc.; Micron Technology Inc.; Paychex Inc.

Also see: Thursday's small caps to watch

With files from Bloomberg News and other wire services

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