Source: The Canadian Press

Resource stocks could lift the TSX at the open as oil prices moved higher after a report showed that U.S. crude demand may be improving.

Other commodity prices also rose and the Canadian dollar moved up 0.32 of a cent to 97.39 cents US.

U.S. futures were little changed amid deepening worries about European countries’ ability to cut their heavy debt loads.

The Dow Jones industrial futures were ahead two points at 10,790, the Nasdaq futures dipped 0.25 of a point to 2,008.25 while the S&P 500 futures were off 0.1 of a point at 1,141.6.

The November crude contract on the New York Mercantile Exchange rose 37 cents to US$76.55 a barrel after the American Petroleum Association reported that crude inventories fell 2.4 million barrels last week. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had forecast an increase of 2.2 million barrels. Inventories of gasoline rose while distillates fell, the API said.

The Energy Department’s Energy Information Administration reports its weekly supply data later Wednesday.

Meanwhile, gold prices headed further into record territory amid a weakening U.S. dollar with the December bullion contract up $2.40 to US$1,310.70 an ounce.

And the December copper contract in New York edged up a penny to US$3.65 a pound.

The rise in commodities also came amid a report that Chinese manufacturing activity accelerated to its fastest pace in five months in September, helped by rising export orders and purchasing.

The HSBC China Manufacturing PMI — a seasonally adjusted index designed to measure the performance of the manufacturing economy — rose in September to 52.9. That compared with 51.9 in August and was the highest level since April.

Despite the positive trends in September, the survey’s findings were not entirely upbeat.

New export activity rose after declining for three straight months, but the growth rate was marginal, the report said.

Meanwhile, protests against austerity measures raised worries about countries’ ability to cut heavy debt loads, offsetting for now any hopes that the U.S. Federal Reserve might move to boost the U.S. economy.

Demonstrators gathered in Brussels as well as Spain and Ireland as labour unions protested against spending cuts they say unfairly penalize average workers for problems and debt caused by banks.

The social unrest has raised concerns that countries like Spain, whose debt some say could be downgraded again soon, will not be able to implement the policies required to heal their bloated public finances.

Asian markets closed higher earlier, supported by growing speculation that the Fed might announce further stimulus measures at the end of a Nov. 2-3 meeting in a bid to shore up the recovery in the U.S. economy.

Japan’s benchmark Nikkei 225 stock average closed 0.7% higher.

In Hong Kong, the Hang Seng Index gained 1.2%, while South Korea’s Kospi increased 0.6% and the Shanghai Composite Index retreated less than 0.1%.

London’s FTSE 100 index was off 0.14%, Frankfurt’s DAX dipped 0.08% while the Paris CAC 40 was up 0.36%.

In corporate news, Suncor Energy Inc. (TSX:SU) said it has contained a diesel fuel leak that began Tuesday night near its Petro-Canada refinery at the Port of Montreal.