Canada's main stock index looked set to open higher on Wednesday, as investors bet the U.S. Federal Reserve will unveil a fresh round of stimulus for the economy.
The S&P/TSX composite index surged 51.89 points to close Tuesday at 12,282.36, with Wednesday futures up 0.3%.
The Canadian dollar inched up 0.01 cents to 101.42 cents U.S. Wednesday morning.
Cenovus Energy Inc said it expects to produce nearly 14% more oil next year as it ramps up output at its Christina Lake oil sands project in northern Alberta.
Range Resources Corp said it expects capital spending to fall 19% to $1.3 billion in 2013, with nearly 85% of the budget going to its oil and liquids-rich operations in the Marcellus and Horizontal Mississippian shale fields.
ON BAYSTREET
The TSX Venture Exchange faded 2.81 points Tuesday to 1,183.93
ON WALLSTREET
The U.S. Federal Reserve is back in the spotlight Wednesday as investors await the central bank's decision on the fate of Operation Twist, a stimulus program that is set to end this month.
The Dow Jones Industrials futures nipped up 10 points, or 0.1%, to 13,288, while S&P 500 futures eked up 0.6 points to 1,432.10, and futures for the tech-rich Nasdaq added 7.5 points, or 0.3%, to 2,693.25
On the corporate front, Costco posted better-than-expected earnings and revenue for its fiscal first quarter, sending shares slightly higher.
DuPont shares gained ground after the chemical company announced a $1-billion U.S. share buyback program and updated its 2012 earnings guidance to the high end of its previous range
Fed officials are expected to expand the third round of its bond-buying program by adding Treasuries to it current monthly purchase of $40 billion U.S. in mortgage-backed securities when Operation Twist concludes Dec. 31
Under Twist, the Fed has been selling short-term Treasuries it already owns in order to buy $45 billion a month in longer-term bonds, aiming to lower long-term interest rates without having to increase the dollar amount of the assets on its books.
While some predict that the Fed will now start buying $45 billion U.S. a month in Treasuries as a replacement, some experts said the new purchase program may be somewhat smaller.
The central bank's new economic forecasts are due later in the afternoon
European markets were mixed but steady in morning trading, with France's benchmark index in the red. Asian markets continued their winning streak, even as North Korea fired a long-range rocket -- an unnerving event for many countries in the region.
Oil prices put on 61 cents to $86.40 U.S. a barrel
Gold prices recovered $7.60 to $1,717.20 U.S. an ounce.
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