CANADA STOCKS-TSX set to open higher on commodity price jump

Tue Dec 7, 2010 8:46am EST
 
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Dec 7 (Reuters) - Toronto's resource heavy main stock index looked set to open higher on Tuesday, buoyed by rallying commodity prices and expectations the Bank of Canada will hold interest rates steady.

FACTORS TO WATCH

* Canadian equity futures <0#SXF:> pointed to a higher open.

* U.S. stock index futures rose after U.S. President Barack Obama forged a compromise with Republicans to extend Bush-era tax breaks for two years. [.N]

* All 44 forecasters polled by Reuters expect the Bank of Canada to keep interest rates on hold at 1 percent on Dec. 7, but they were divided on the timing of the next hike in 2011. [CA/POLL] [ID:nN02172937]

* European shares hit a 26-month high, with commodity issues gaining on strong crude and metals prices and as a deal to extend U.S. tax cuts helped lift confidence in the economy. [.EU]

* Asian markets were largely up, but Nikkei edged lower as stronger yen encouraged investors to book profits.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.87 percent in early trade.   Continued...