Toronto's main stock index looked set to edge higher when trade opens on Wednesday on optimism that the U.S. Federal Reserve will announce fresh steps to stimulate the economy as its policy meeting ends.
The S&P/TSX Composite Index zoomed higher by 187.23 points, or 1.6%, to close Tuesday at 11,788.36. Canada stock futures traded up 0.21%
The Canadian dollar was up 0.08 of a cent this morning to 98.33 cents U.S.
U.S. congressional leaders failed on Tuesday to break a deadlock on a long-stalled transportation funding measure, and House Republicans now may need to find a new legislative vehicle to carry their plan to approve the controversial TransCanada's Keystone XL oil pipeline.
ON BAYSTREET
The TSX Venture Exchange advanced 4.63 points to 1,264.38. The Nasdaq Canada index moved ahead 6.55 points to 379.70
ON WALLSTREET
U.S. stocks were headed for a modestly higher open Wednesday following news that Greece has formed a coalition government.
However, the gains may be modest as investors wait to see if the Federal Reserve announces any moves to stimulate the economy when it wraps up its two-day meeting shortly after noon ET.
Futures for the Dow Industrials tacked on 24 points, or 0.2%, to 12,786, about 30 minutes before the opening bell, while futures for the S&P 500 forged ahead 2.3 points, or 0.2%, to 1,352.50. Futures for the tech-rich Nasdaq gained nine points, or 0.3%, to 2,621.50.
Greece has been a thorn in investors' sides for months, with fears about the country leaving the euro-zone and ripple effect on other sovereign nations sending global financial markets on a roller coaster ride. Greece will still have hurdles to cross but the creation of a coalition government is a step in the right direction.
Investors are also hoping that the Fed will announce another round of bond buying, plans to continue its so-called Operation Twist or some other type of stimulus at the close of its two-day policy meeting Wednesday afternoon.
European stocks were mixed in midday trading. Britain's FTSE 100 rose 0.6% and the DAX in Germany edged up 0.2%, while France's CAC 40 was barely changed.
Late Tuesday, European leaders at the G-20 meeting pledged to "take all necessary policy measures to safeguard the integrity and stability" of the euro.
But investors are hoping to hear more action from leaders at next week's two-day European Union summit.
Asian markets ended mixed. The Shanghai Composite slid 0.3%, while the Hang Seng in Hong Kong added 0.5% and Japan's Nikkei gained 1.1%
Oil for July delivery rose 25 cents to $84.28 U.S. a barrel.
Gold futures for August delivery dropped $9.80 to $1,613.40 U.S. an ounce.
