Source: The Canadian Press

The Toronto stock market appeared headed for a higher open as gold prices continued to rise, and expectations continue to grow that the U.S. Federal Reserve will take steps to stimulate the economy at its meeting next month.

The December bullion contract in New York gained $3.40 to US$1,343.70 an ounce.

The Canadian dollar edged up 0.20 of a cent to 98.50 cents US.

Ahead of the opening bell, Dow Jones industrial average futures rose 38 points, or 0.4 per cent, to 10,902. Standard & Poor’s 500 index futures rose 3.60, or 0.3%, to 1,158.30, while Nasdaq 100 index futures fell 0.50, or less than 0.1%, to 2,018.00.

In corporate news, Johnson & Johnson agreed to buy Dutch biotechnology company Crucell NV for about $2.41 billion. Johnson & Johnson first announced it was planning an offer last month.

Costco Wholesale Corp.’s shares dipped in pre-opening trading after its quarterly revenue fell short of analysts’ expectations. Its shares fell $1.41, or 2.2%, to $63.25.

European indexes initially dipped after the downgrade, but have since recovered those losses. Britain’s FTSE 100 rose 0.8%, Germany’s DAX index gained 1%, and France’s CAC-40 rose 1.2%.

Japan’s Nikkei stock average jumped 1.8%.