Toronto's main stock index looked set to open higher on Thursday, on investor hopes U.S. Federal Reserve Chairman Ben Bernanke could hint at more monetary stimulus and after the Chinese central bank cut benchmark deposit and lending rates.
The S&P/TSX Composite Index gained 125.69 points, or 1.1%, to close Wednesday at 11,633.40
The Canadian dollar was up 0.26 of a cent to 97.61 cents U.S.
Among stocks to watch this morning, Sandvine Corp. estimated smaller-than-expected revenue for the second quarter as several large projects were delayed.
Australia's competition regulator approved a friendly takeover bid by Swiss commodities trader Glencore International Plc of Viterra Inc., clearing another hurdle for the biggest deal in years in the global agricultural sector.
Enbridge Inc. shut down a key supply line for Canadian crude shipments to U.S. refineries on Wednesday but said the outage was expected to be short in duration and have little impact on deliveries.
Harry Winston Diamond Corp. said its quarterly profit more than tripled as it sold more rough diamonds, and the company said it expects global demand for luxury jewelry and watches to rise.
ON BAYSTREET
The TSX Venture Exchange gained 17.07 points Wednesday to 1,302.64. The Nasdaq Canada index tacked on 12.10 points to 368.08
ON WALLSTREET
A surprise rate cut by China's central bank and a successful bond auction by Spain cheered investors around the globe Thursday and had U.S. stocks poised to build on the previous day's rally.
Investors also looking ahead to two key developments in the United States: the weekly report on first-time unemployment claims and Federal Reserve Chairman Ben Bernanke's congressional testimony.
Futures for the Dow Industrials hiked 63 points, or 0.5%, to 12,482, half an hour before the opening bell, while futures for the S&P 500 took on 9.8 points to 1,325.30. Futures for the tech-rich Nasdaq gathered 18.5 points, or 0.7%, to 2,568.50.
China's central bank cut its range of lending and deposit rates by a quarter percentage point in an effort to address the slowdown in the nation's manufacturing sector. Its key 1-year lending rate fell to 6.31%.
European stocks rallied in morning trading. France's CAC 40 surged 3.5% following the China rate cut, the DAX in Germany rallied 3.4% and Britain's FTSE 100 added 1.5%.
Asian markets ended mixed. The Shanghai Composite eased 0.7%, but the Hang Seng in Hong Kong gained 0.7% and Japan's Nikkei finished 1.2% higher.
Oil for July delivery, which had been lower ahead of the China rate cut, was up 83 cents to $85.85 U.S. a barrel following the cut.
Gold futures for August delivery pared earlier losses, but were still down $7.20 to $1,627 U.S. an ounce.
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