Wednesday's Events: Cdn Retail Sales; BOC to Sell Two-Year Note; DOE Oil Inventories

Canadian retail sales followed by the U.S. Department of Energy's weekly oil inventories will hold the focus of Wednesday's news releases on what is shaping up to be a mild day of economic news for North America. At midday, markets will also be paying attention to the Bank of Canada selling C$3.6 billion in two-year notes.

At 8:30 a.m. EDT, Statistics Canada will release June's retail sales figures, which are expected to post a 0.5% month-over-month increase after rising 0.4% in May. Retail sales excluding autos are expected to post a modest 0.6% month-over-month increase after rising 0.4% in May.

Also at 8:30 a.m. EDT, Statistics Canada will release its index of leading indicators for July. Economists are expecting a 0.1% month-over-month rise after last month's flat performance.

Canadian markets will also be paying attention to Desjardins's affordability index for Q2 at 8:30 a.m. EDT. The index measures the effects of variations in housing prices and mortgage rates, along with the costs associated with buying and holding property.

At 10 a.m. EDT, the U.S. National Association of Realtors will release the commercial leading indicator for the second quarter of 2008. In Q1, the index declined 0.7%.

At 10:30 a.m. EDT, the Bank of Canada will sell $3.6 billion in 2008.09.04 bills.

At 10:35 a.m. EDT, the U.S. Department of Energy will release oil inventories for the week ending Aug. 15. Economists are expecting a 1000k build in crude oil reserves following the previous 316k decrease. Gasoline inventories are expected to fall 3000k following the previous 6394k decline. Distillate inventories are expected to add 1000k barrels after falling 1759k in the previous week. Refinery utilization is expected to expand 0.35% after falling 1.06% in the previous week.

At noon EDT, the BOC will sell C$3.6 billion in two-year notes. The move will be followed by the repurchase of C$400 million in various Bank of Canada paper at 12:20 p.m. EDT.

8:30 CA Leading Indicators (M/M) July Exp: +0.1% Prior: 0.0%

8:30 CA Retail Sales (M/M) June Exp: +0.5% Prior: +0.4%

8:30 CA Retail Sales Less Autos (M/M) June +0.6% Prior: +0.4%

10:30 CA BOC to sell C$2.0B in Bills

10:35 US DOE U.S. Crude Oil Inventories W/E August 15 Exp: +1000K Prior: -316K

10:35 US DOE U.S. Gasoline Inventories W/E August 15 Exp: -3000K Prior: -6394K

10:35 US DOE U.S. Distillate Inventory W/E August 15 Exp: +1000K Prior: -1759

10:35 US DOE U.S. Refinery Utilization W/E August 15 Exp: +0.40% Prior: -1.06%

12:00 CA BOC to sell C$3.6B in Two-Year Notes

12:20 CA BOC to Repurchase C$400M in various Bonds

By Erik Kevin Franco and Steve Stecyk and edited by Nancy Girgis