Toronto’s stock market appeared set for a positive open Tuesday as investors took cheer from Europe’s economy and commodity prices made significant strides.
The Canadian dollar traded at 96.74 U.S. cents.
Statistics Canada reported the country’s annual inflation rate remained relatively high at 2.9% last month as Canadians continued to pay considerably more for food and gasoline than they had 12 months earlier.
In company news, TransCanada Corporation, a major pipeline operator and power producer, has expanded its alternative energy business with a deal to buy nine solar power projects in Ontario for $470 million.
Global stocks were broadly higher after an unexpected increase in German business confidence and a dip in Spanish and Italian bond yields.
U.S. stock futures pointed towards a stronger opening. Dow futures rose 100 points, or 0.9%, to 11,803, while S&P 500 futures gained 14.9 points, or 0.9%, rising to 1,213.90. Nasdaq futures were 21.75 points, or 1%, more robust at 2,234.25.
France's CAC 40 rose 1%, while Germany's DAX gained 0.9%. London’s FTSE 100 was little changed.
The Munich-based Ifo Institute said its monthly confidence index for Europe's largest economy rose to 107.2 in December from 106.6 in November, defying expectations for a decline and underscoring the strength of the economy in the face of a sovereign debt crisis that has hammered growth in other euro-zone members.
The increase indicated the euro-zone crisis has so far left Germany relatively unscathed and suggested that the steady declines in German unemployment and sanguine consumers are boosting prospects for the corporate sector.
Short-term financing costs for Spain more than halved as banks swept up debt at an auction, with much of the purchasing power said to come from cut-rate money to be lent by the European Central Bank. Demand for three- and six-month Spanish Treasury bills was high, with more than 18-billion euros offered for 5.6-billion euros sold, above the targeted amount of 3.5-billion to 4.5-billion euros.
Japan's Nikkei rose 0.5%. Hong Kong's Hang Seng was little changed.
Copper rose to $7,358 U.S. a tonne.
Gold gained $9.90 to $1,606.60 U.S. an ounce.
Crude oil traded $1.31 higher at $95.19 U.S. a barrel.
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