Canadian main stock index futures pointed to a higher open as investors shifted their focus from Cyprus's financial woes to the U.S. Federal Reserve's policy meeting, where the central bank is expected to sustain its $85-billion U.S. monthly bond-buying stimulus despite improving economic data.
The S&P TSX index turned negative 7.89 points to end Tuesday at 12,773.87
The Canadian dollar gained 0.26 cents to 97.58 cents U.S. early Wednesday.
Alamos Gold Inc dropped its offer to buy Aurizon Mines Ltd, putting an end to its bidding war with Hecla Mining Co.
Chinese gold miner Zijin Mining Group said it had agreed to set up an offshore investment fund with Sprott Inc. with a target size of $500 million.
ON BAYSTREET
The TSX Venture Exchange turned lower 5.27 points Tuesday to 1,106.51
ON WALLSTREET
Cyprus appears to be taking a backseat to the Federal Reserve for U.S. investors Wednesday.
Futures for the Dow Industrials jumped 74 points, or 0.5%, to 14,462. Futures for the S&P 500 improved 9.10 points, or 0.6%, to 1,551.30, and futures for the NASDAQ gained 23 points, or 0.8%, to 2,802.50.
In corporate news, FedEx widely missed earnings estimates and cut its outlook for the year. The company is often viewed as a bellwether for the broader economy due to the global scope of its business.
FedEx also said it may temporarily ground some aircraft. Shares of rival UPS fell more than 1% in premarket trading.
Shares of Lennar rose 1% after the home builder reported better-than-expected earnings.
General Mills reported earnings that missed forecasts and issued lukewarm guidance. The stock
Adobe Systems shares jumped more than 5% in premarket trading, a day after the graphics software maker beat earnings estimates.
At 2 p.m. ET, the Fed will release its latest interest rate statement and economic forecasts. Chairman Ben Bernanke is expected to maintain a gloomy outlook despite stronger economic data.
Investors will also be monitoring developments out of Cyprus Wednesday after lawmakers voted against a tax on bank deposits, calling a bailout deal into question.
European markets were higher in morning trading, while Asian markets posted gains. The Shanghai Composite added 2.7% and Hong Kong's Hang Seng advanced 1%. Tokyo's stock market was closed for the first day of spring.
Oil prices took on 74 cents to $92.90 U.S. a barrel
Gold prices shed $3.70 an ounce to $1,607.60 U.S.
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