TSX heads for higher open Monday

U.S. futures advanced as the Dow Jones industrial futures were ahead 72 points to 13,104, the Nasdaq futures gained 18 points to 2,746.75 and the S&P 500 futures were up 8.4 points to 1,402.5.

Market sentiment got a lift after German chancellor Angela Merkel said her country may be willing to temporarily increase the eurozone’s bailout funds to €700 billion.

The 17-country eurozone is under pressure to raise its financial firewalls to boost confidence in struggling countries like Italy and Spain.

Merkel said some €200 billion in rescue loans already promised to Greece, Ireland and Spain could run in parallel to a new €500 billion bailout fund until they have been repaid.

Also, a closely watched survey shows that German business confidence rose for the fifth month in a row. The Ifo Institute said its main confidence index rose to 109.8 points from 109.6 in February.

Both the current assessment and expectations components topped estimates.

Germany’s economy has been traditionally powered by exports but helped lately by increasingly strong domestic demand. Europe’s largest economy has been a bright spot over the past couple of years.

However, the government is predicting only 0.7% growth this year, as the outlook for European output and global trade weakens.

Oil prices were up slightly as investors weighed concerns over global economic growth against possible disruptions in crude supplies due to an international standoff over Iran’s nuclear program.

The May crude contract on the New York Mercantile Exchange edged up a dime to US$106.97 a barrel.

Crude has hovered between $105 and $110 for the last month, up from $75 in October, amid worries that a military strike by Israel or the U.S. on Iran’s nuclear facilities could disrupt supplies from the oil-rich Middle East.

However, signs of tepid crude demand in the U.S. and Europe and slowing economic growth in China were limiting gains. Analysts are also concerned that higher fuel costs will undermine consumer spending and trigger inflation.

Copper prices were up five cents to US$3.86 a pound on the Nymex. Prices for the metal fell last week after HSBC’s Chinese manufacturing index went deeper into contraction during March. Copper prices were also under pressure amid soft Chinese housing data and a warning from miner BHP Billiton.

China is the world’s biggest consumer of copper, viewed as an economic bellwether as it is used in so many industries. China itself has been a major prop for a fragile global economic recovery.

Bullion prices also moved higher with the April contract up $15.40 to US$1,677.80 an ounce.

Investors also took in a speech from U.S. Federal Reserve Chairman Ben Bernanke. He said the U.S. job market remains weak despite three months of strong hiring and that the Federal Reserve’s existing policies will help boost growth.

Bernanke’s comments were a strong indication that the central bank is prepared to keep its low-interest rate policies in place for some time to come despite the recent signs of economic growth.

Traders will also digest news that Pierre Duhaime, the chief executive officer at engineering giant SNC-Lavalin, (TSX:SNC) has resigned. The announcement came as the company revealed some details about an internal accounting investigation into millions of dollars of questionable payments.

European bourses were positive with London’s FTSE 100 index up 0.63%, Frankfurt’s DAX gained 0.9% and the Paris CAC 40 advanced 0.51%.

Earlier in Asia, Japan’s Nikkei 225 index rose less than 0.1%, Hong Kong’s Hang Seng Index finished unchanged.

Mainland Chinese shares were flat too as the benchmark Shanghai Composite Index was less then 0.1% higher while the smaller Shenzhen Composite Index was unchanged.