Canada's main stock index looked set to open higher on Wednesday after reports that International Monetary Fund could boost its European lending facility to help ease the euro-zone debt crisis.
Still, uncertainties about Greek debt talks and threat from Fitch to cut Italy's credit rating could limit any optimism in Canada's equities market.
Among Canadian stocks to watch this morning, Research In Motion may not be on Samsung Electronics Co's immediate shopping list, but the company may still be attractive to Asian smartphone makers looking to compete against Google's Android, the world's fastest growing mobile platform.
Brookfield Asset Management Inc ended its agreement with Kerzner International Ltd to swap debt for equity on three Kerzner properties, after a court halted its takeover of the huge Atlantis resort in the Bahamas.
The Canadian dollar traded at 98.67 cents U.S., or about 0.19 cents above late Tuesday’s reading.
U.S. stock futures pointed north as well. Dow futures were up 29 points, or 0.2%, at 12,449 about half an hour before the market opened. S&P 500 futures inched 3.6 points, or 0.3% higher to 1,292.90, while Nasdaq futures grew 10.75 points, or 0.5% to 2,400.50.
Signs that the IMF is taking the European debt crisis seriously supported stocks and the euro, as Greece prepared to hammer out a plan to avert bankruptcy with its creditors.
Britain's FTSE 100 gained 0.2%, France's CAC 40 rose 0.3%, and Germany's DAX gained 0.6%.
The IMF plans to boost its lending resources by $1 trillion U.S., according to various media reports. Managing Director Christine Lagarde said that the institution was looking at ways to increase its financial firepower, partly to deal with Europe’s debt crisis.
Bloomberg News cited an unidentified G20 official as saying the IMF is pushing China, Brazil, Russia, India, Japan and oil-exporting nations to be the top contributors. The fund wants the agreement struck at the Feb. 25-26 meeting of G20 finance ministers and central bankers in Mexico City, the official said.
Amid the speculation, the euro rose to $1.2845 U.S. It was also helped by a bond auction in which Portugal easily raised $3.2 billion U.S., just days after Standard & Poor's downgraded its credit rating to junk.
Japan's Nikkei rose 1%, while Hong Kong's Hang Seng rose 0.3%.
Gold gained $1.10 an ounce at $1,656.70 U.S.
U.S. crude oil rose 27 cents to $100.98 U.S. a barrel.
Copper prices rose 0.6% to $8,250 U.S. a tonne.
