Toronto's main stock index looked set to open higher on Wednesday, helped by solid U.S. economic data and reassurance from Chinese authorities that the nation will keep investing in debt issued by euro-zone governments.
The Canadian dollar inched above parity with its American rival, gaining 0.24 cents to $1.004 U.S. cents.
Canadian energy stocks will be in focus after a couple of high-profile companies reported their quarterly results. Talisman Energy Inc. in its fourth quarter reported a loss of $117 million or 11 cents a share.
Cenovus Energy Inc. reported that its earnings rose to $266 million or 35 cents a share, up from 10 cents a share last year.
Other stocks to watch this morning include Air Canada set to continue labour negotiations with its 3,000 pilots with the help of a government-appointed mediator, even as the pilots voted overwhelmingly in favour of giving their negotiators the option to call a strike.
Investment ace CI Financial Corp. said on Tuesday it has agreed to buy a minority stake in Lawrence Park Capital Partners, a hedge fund manager focused on the fixed income market.
U.S. index futures were higher with another half-hour before markets open, suggesting that stocks will rise at the start of trading. Futures for the Dow Jones industrial average rose 44 points, or 0.3%, to 12, 884. Futures for the broader S&P 500 rose 5.9 points or 0.4% to 1,353.60, while Nasdaq futures surged 13 points, or 0.5%, to 2,589.
Both indexes ended Tuesday relatively flat after making a striking comeback in the final half-hour of trading, in a rebound that was driven by the view that Greek policy makers were providing the guarantees on austerity measures that euro-zone members were demanding.
Meanwhile, European gross domestic product contracted by 0.3% in the fourth quarter. While that contraction is better than expected, it nonetheless points to recession.
The big hopes appear to be coming from China, where investors believe comments from the country's central bank suggest that it is willing to use its financial heft to lift Europe from its sovereign-debt woes.
The U.K.'s FTSE 100 was up 0.2% and Germany's DAX index was up 1.4% in afternoon trading.
In Asia, Japan's Nikkei 225 jumped 2.3%, rising on the latest asset-buying efforts from the Bank of Japan.
Commodities were also on the rise. Crude oil rose to $101.50 U.S. a barrel, up 0.8%. Gold rose to $1,728 U.S. an ounce, up 0.6%.
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