Source: The Canadian Press

Stock markets appeared set for a higher open Monday amid strong economic data from China and the passage of new global regulations for the financial sector.

Confidence in banks worldwide was boosted after regulators agreed to reforms on the weekend that could help avert another credit crisis, including a requirement that banks increase their reserves to protect against potential losses.

The new regulations have added to confidence in Europe’s banks, which have been slower than their North American counterparts to bolster reserves.

This, combined with fresh signs of strong economic expansion in China, sent U.S. stock futures higher.

China’s industrial output, fixed asset investment, and retail sales all showed higher-than-expected growth in August, according to government data released Saturday. Buying sentiment was also rekindled because the central bank didn’t raise interest rates after the inflation hit a year high last month.

Futures on the S&P 500 added 8.6 points to 1,113.5, while Dow Jones industrial average futures gained 76 points to 10,469. On the Nasdaq, futures were up 14.25 points to 1,904 ahead of the opening bell.

The October crude contract on the New York Mercantile Exchange gained 54 cents to US$76.99 a barrel after the closure of a Chicago-area pipeline following a leak continued to raise supply concerns. The operator of the pipeline, Enbridge Inc. (TSX:ENB) subsidiary Enbridge Energy Partners, said almost all of the spilt crude has been cleaned up but the pipeline remains shut down.

The Canadian dollar added 0.58 of a cent to 97.19 cents US.

The December bullion contract slipped $2.80 to US$1,243.70 an ounce.

In corporate news, energy company Athabasca Oil Sands Corp. (TSX:ATH) has signed a deal to acquire all outstanding common shares of Excelsior Energy Limited (TSXV:ELE) for approximately $144 million.

Auto parts giant Magna International Inc. (TSX:MG) said co-CEO Siegfried Wolf will leave the company in November to join the parent company of Russian automaker Gaz Group.

And Marsulex Inc. (TSX:MLX) announced it is selling its Stablex division, operator of a hazardous waste disposal plant northwest of Montreal, to an American company for $80 million.

In Europe, stock markets rallied following reports of the new banking regulations. Britain’s FTSE 100 rose 1.1%, Germany’s DAX index gained 1%, and France’s CAC-40 rose 1.2%. Japan’s Nikkei stock average climbed 0.9%.