Toronto stock market heads for higher open amid strong Chinese trade data

TORONTO – The Toronto stock market headed for a higher open as commodity prices rose amid stronger than expected trade figures from China.

Traders also took in a slew of earnings from companies including Air Canada (TSX:AC.B) and Rogers Communications (TSX:RCI.B). They also digested a major deal involving Maple Leaf Foods (TSX:MFI). Mexico’s Grupo Bimbo is buying all the shares of Canada Bread Co. Ltd. (TSX:CBY) in a deal worth $1.83 billion or $72 a share. Maple Leaf currently holds 90 per cent of Canada Bread’s outstanding shares.

The Canadian dollar was ahead 0.13 of a cent to 90.9 cents US.

U.S. futures were also little changed following substantial gains Tuesday after Congress voted Tuesday night to extend the U.S. debt ceiling without any spending conditions. Republican lawmakers allowed a so-called clean bill, unlike other times in the past when the party insisted that any increase be matched by spending cuts.

The Dow Jones industrial futures edged up five points following a 193-point surge, the Nasdaq futures gained 5.5 points to 3,618.3 while the S&P 500 was 0.1 of a point higher to 1,813.7.

Markets were also relieved after the new head of the U.S. Federal Reserve vowed a continuation of low interest rates. Janet Yellen said that while she thinks the U.S. economy is strong enough to weather a cutback in a key stimulus program, rates should stay low to support a still lacklustre economy.

Meanwhile, data showed that China’s trade growth accelerated in January imports rose 10 per cent to $107.2 billion, up from January’s 8.3 percent growth. Exports rose 10.6 percent to $126.7 billion, more than double the previous month’s 4.3 per cent expansion.

The report helped alleviate worries about the world’s second-biggest economy. Markets had sold off early last week after other data showed manufacturing expanded at a much slower than expected pace at the beginning of the year.

The data helped send commodity prices higher as March crude on the New York Mercantile Exchange gained 50 cents to US$100.44 a barrel.

March copper gained three cents to US$3.25 a pound while April gold edged up $1.50 to US$1,291.30 an ounce.

On the earnings front, Air Canada had a quarterly net loss of $6-million or two cents per share, compared with a loss of $60 million or 22 cents per share. Ex-items, earnings were $3 million or one cent a share. The carrier warned that this year’s first quarter will continue to feel the impact of weather-related costs and the effect of the lower loonie.

Rogers Communications Inc. (TSX:RCI.B) posted adjusted earnings of $347 million or 69 cents a share, missing estimates by six cents. Revenue of $3.24 billion missed estimates of $3.3 billion while the telco and media company also upped its quarterly dividend five per cent to 45.7 cents per share.

European markets advanced as London’s FTSE 100 index gained 0.67 per cent, Frankfurt’s DAX rose 1.3 per cent while the Paris CAC 40 rose 0.5 per cent.

Earlier in Asia, Japan’s Nikkei 225 gained 0.6 per cent, Hong Kong’s Hang Seng surged 1.5 per cent and China’s Shanghai Composite Index was 0.3 per cent higher.