Toronto's main stock index looked set to open higher on Thursday, supported by a rise in commodity prices on hopes lawmakers will agree on a U.S. budget deal to avert the "fiscal cliff" of tax hikes and spending cuts.
The S&P/TSX Composite Index was in the green 28.70 points to close Wednesday at 12,140.33, with futures up 0.9% Thursday morning.
The Canadian dollar was unchanged at 100.79 cents U.S. Thursday morning
Research In Motion Ltd received a big boost on Thursday after Goldman Sachs raised its rating on the company, sending shares of the BlackBerry maker soaring more than 12 percent in trading before the morning bell.
Rio Tinto aims to axe $7 billion in costs over the next two years and sell more assets to cushion against weaker commodity prices, while at the same time beefing up output in its lucrative iron ore business.
Royal Bank of Canada's quarterly profit rose 22% on a sharp jump in fixed income trading revenue and steady loan growth
Clothing maker Gildan Activewear Inc posted an 84% rise in fourth-quarter profit, helped by higher printwear sales volumes, and the Canadian company increased its quarterly dividend by 20%.
On the economic slate, figures released by Statistics Canada told us that the raw materials price index was unchanged in October, while its industrial products price index demurred 0.1% last month over September, largely the result of lower prices for petroleum and coal products.
ON BAYSTREET
The TSX Venture Exchange dipped 0.80 points Wednesday to 1,205.37
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Markets around the world are reacting positively to signs that Washington might be moving toward a deal on the fiscal cliff.
The Dow Jones Industrials futures hiked 59 points, or 0.5%, to 13,016, while S&P 500 futures took on 8.4 points, or 0.6%, to 1,415.50, and futures for the tech-rich Nasdaq gained 17 points, or 0.6%, to 2,677.50
Investors are likely to take their cue from developments in Washington during the trading day. Lawmakers and the White House have been in talks to avoid the slew of year-end tax increases and spending cuts known as the fiscal cliff.
Meanwhile, the government said U.S. gross domestic product grew at a 2.7% annual rate in the third quarter. Separately, weekly claims for unemployment benefits fell 23,000 to 393,000.
In corporate news, quarterly results are due before the open from companies including troubled bookseller Barnes & Noble and grocery chain Kroger. Many major retailers will also report same-store sales for November, including the start of the holiday shopping season over the Black Friday weekend.
Shares of Tiffany tumbled early Thursday, after the luxury retailer reported third-quarter earnings and sales that missed estimates.
The company cut its forecast for the full-year.
Shares of Target were under pressure as well, after the retailer reported a 0.1% decline in sales for the first four weeks of November.
Exchanges in Asia gained, with Japan’s Nikkei 225 adding 1.0% and Hong Kong's Hang Seng closing 1.1% higher.
China's marquee index, the Shanghai Composite, lagged its rivals and posted a fresh multi-year low. The index lost 0.5%, and remains well below the psychologically important 2,000-point mark.
Markets in Europe also capitalized on the fiscal talks momentum, gaining around 0.8% each in early trade.
Oil prices spiked 1.5% to $87.77 U.S. a barrel
Gold prices moved ahead 0.5% to $1,724.70 U.S. an ounce.
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