TSX set to to open higher, U.S. futures up ahead of regular trading Thursday

TORONTO – The Toronto stock market looks poised for a fourth positive open this week but a decline in gold prices overnight may signal the rally for the resource-heavy market is running out of momentum.

The Canadian dollar was up slightly at 90.74 cents US. The loonie closed Wednesday at 90.62 cents US after falling 0.03 of a cent.

U.S. futures were in positive territory as the European Central Bank announced its main interest rate will be unchanged, despite evidence that the economy of the 18-country eurozone is weak and inflation is going down. The ECB’s key rate is already at a record-low 0.25 per cent, so there may be questions whether the European Central Bank will adopt less conventional measures to support the euro region’s economy, as the U.S. Federal Reserve has done.

The Dow Jones industrial futures were up 23 points at 16,510, the Nasdaq futures advanced 4.25 points to 3,662.5 while the S&P 500 futures were ahead two points to 1,885.00.

Toronto’s main stock index closed the trading session ahead 78.56 points to 14,459.11.

After North American markets closed, China’s leaders unveiled a mini-stimulus program aimed at shoring up sputtering growth in the world’s No. 2 economy.

Under the plan, China’s small businesses will get bigger tax breaks, social housing will be built to replace shantytowns and railway construction will be sped up. Premier Li Keqiang announced the measures after a regular meeting of the State Council, China’s cabinet.

Oil continued to trade below US$100 a barrel and prices for key commodities weakened. May contracts for light crude were down 31 cents at US$99.31 a barrel. May copper contracts were down three cents at US$3.016 a pound while bullion for June delivery was down $6.05 at US$1,284.3 an ounce.

In corporate developments, Fortis Inc. (TSX:FTS), one of Canada’s largest utility companies, has received regulatory approval in the U.S. to move ahead with its acquisition of UNS Energy Corp., an Arizona-based electricity and gas utility company. The Newfoundland-based company, which operates power and gas utilities in several provinces and U.S. states, says the U.S. Federal Energy Regulatory Commission gave the deal the green light for the $4.3 billion deal.

Montreal-based clothing retailer Reitmans (Canada) Ltd. (TSX:RET.A) has reported a net loss of $2.57 million for its fourth quarter, as it continues to work at reducing costs and improving efficiencies across all its banners. That amounted to a loss of four cents per dilluted share, compared with a loss of $1.14 million, or two cents, in the same period a year earlier. Sales were $240.68 million for the three-month period ended Feb. 1, versus $267.66 million a year earlier.

European bourses were mixed. London’s FTSE 100 index gained 0.02 per cent, Frankfurt’s DAX was down 0.24 per cent and the Paris CAC 40 declined 0.25 per cent.

Earlier in Asia, Tokyo’s Nikkei 225 gained 0.84 per cent, Hong Kong’s Hang Seng advanced 0.18 per cent and China’s Shanghai Composite Index fell 0.74 per cent.