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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.

U.S. and Canadian markets are heading for sturdy gains as the opening bell approaches, largely thanks to relief that crude oil prices are not falling further as the week gets underway.

Futures for the S&P 500 - which fell 3.5 per cent last week for its biggest weekly loss since May 2012 - are up 0.7 per cent. Futures for the TSX - which lost more than 5 per cent last week for its biggest week-long slip since September 2011 - are up 0.4 per cent.

U.S. crude oil futures are close to unchanged after trading both in the green and red so far today. Nevertheless, sentiment for the commodity remains highly negative, and earlier gains this morning were largely pegged to the closure of two Libyan oil ports amid fighting in the region. Earlier overnight, crude hit a fresh five-year low of $56.47 (U.S.) per barrel after the energy minister with the United Arab Emirates said OPEC will refrain from reducing output even if prices fell to $40 a barrel.

In overseas markets, it was a choppy day in Asia, with Japan's Nikkei losing 1.5 per cent. A landslide victory by Prime Minister Shinzo Abe during a snap election on the weekend provided some comfort to the Japanese market,  but a survey showing worsening business sentiment kept concerns about a worsening economy very much alive.

U.S. industrial production and homebuilders data will be arriving later this morning - but the main market driver this week on the economic front will likely come Wednesday when the Federal Reserve concludes its latest policy meeting. Some speculate that the Fed may remove its "considerable time" policy statement pledge when it comes to commenting on how long it will retain current low interest rates.

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

MARKETS:

Futures:

S&P 500 +0.73 per cent; Dow +0.65 per cent; Nasdaq +0.85 per cent; S&P/TSX +0.40  per cent

Equities:

Hong Kong's Hang Seng -0.95 per cent

Shanghai composite index +0.50 per cent

Japan's Nikkei -1.57 per cent

London's FTSE 100 +0.45 per cent

Germany's DAX +0.35 per cent

France's CAC 40 +0.54 per cent

Stoxx 600 +0.44 per cent

Commodities:

WTI crude oil (Nymex Jan) -0.05 per cent at $57.78 (U.S.) a barrel

Natural gas (Nymex Jan) +1.98 at $3.87.

Gold (Comex Feb) -0.88 per cent at $1,211.70 (U.S.) an ounce

Copper (Comex Mar) +0.14 per cent at $2.94 (U.S.) a pound

Currencies:

Canadian dollar at 86.33 (U.S.), down 0.0008

U.S. dollar index up 0.13 at 88.50

Bonds:

U.S. 10-year Treasury yield 2.13 per cent, up 0.05

ECONOMIC INDICATORS:

Canada existing home sales in November were flat from October. From a year earlier, sales rose 2.7 per cent - less than the 4 per cent that was forecast.

U.S. industrial production for November rose 1.3 per cent from October, better than the rise of 0.7 per cent that was expected.

(10 a.m. ET) U.S. National Association of Homebuilders housing market index. It's forecast at 58.

STOCKS TO WATCH:

PetSmart is up about 6 per cent in premarket trading after news that it has been acquired by a group of investors led by BC Partners in a deal worth $8.7-billion (U.S.), or $83 a share.

Talisman Energy confirmed today it's in talks about a potential deal with Spanish oil firm Repsol. The company also said it's been approached by "a number of other parties regarding various transactions" and that no assurances can be made that a deal will result from any discussions.

Canaccord Genuity CEO Paul Reynolds, in a note to employees today, said the company hasn't been targeted for any wrongdoing in conjunction with regulators probing trading activity surrounding Amaya's takeover of the PokerStars and Full Tilt Poker franchises, the Globe and Mail's Streetwise blog is reporting. Canaccord advised on the takeover, and its stock fell 16 per cent late last week following news of the investigation.

Western Energy Services will launch a share buyback program and pull back on its capital spending next year in the face of what could be a prolonged decline in demand for drilling rigs as a result of lower oil prices.

First Quantum Minerals said a "structural failure" has occurred to the atmospheric leach tank at its Ravensthorpe nickel operation in Western Australia, and the plant has been shut down indefinitely.

S&P Dow Jones Canadian Index Services announced late Friday that DHX Media, EnerCare, Great Canadian Gaming, PrairieSky Royalty, Sierra Wireless and Western Forest Products will be added to the S&P/TSX composite index as of the close at the end of this week. Argonaut Gold, BlackPearly Resources, Horizon North Logistics, Ithaca Energy, Savanna Energy Services, TransGlobe Energy, and Westport Innovations will be deleted.

Earnings include: VeriFone Systems, Avanir Pharmaceuticals.

ANALYST ACTIONS:

BMO Nesbitt Burns downgraded Athabasca OIl to "market perform" from "outperform" and cut its price target in half, to $4 (Canadian).

BMO Nesbitt Burns downgraded Encana to "market perform" from "outperform", citing its revised outlook for crude. It sliced its price target almost in half, to $16 (U.S.) from $28.

BMO Nesbitt Burns also downgraded its ratings and lowered its price targets on Bonterra Energy, Enerplus, Journey Energy, and Legacy Oil + Gas, Meg Energy, Pacific Rubiales Energy, Perpetual Energy, Cenovus Energy, and Long Run Exploration. It now rates most as "market perform," but Long Run Exploration received an "underperform" rating and BMO believes a stretched balance sheet means the company is likely to cut its dividend by 75 per cent.

Raymond James downgraded Methanex to "outperform" from "strong buy" and cut its price target to $70 (U.S.) from $80.

Raymond James upgraded Secure Energy Services to "strong buy" from "outperform" but cut its price target to $22.50 (Canadian) from $26.50.

THIS MORNING'S TOP INVESTING READS ON THE WEB:

Gross says Fed may become 'dovish' as oil prices plunge.

Oil rot spreading in credit.

Oil is not the first commodity to crash in the post-crisis period.

Is technology making us worse investors?

Don't have extreme views when it comes to investing.

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Have feedback on our daily Before the Bell report and suggestions on how to make it more useful in your investing day? Please contact Inside the Market Editor Darcy Keith at dakeith@globeandmail.com.

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