TSX poised to open higher

U.S. futures were positive as the Dow Jones industrial futures gained 93 points to 11,948, the Nasdaq composite futures were up 19.75 points to 2,323.25 and the S&&P 500 futures were ahead 11.4 points to 1,248.8.

With Greece having appointed Lucas Papademos as the prime minister of a coalition government, and Italy expected to appoint a new government headed by respected economist Mario Monti, both countries have won some breathing space to get their economies into shape.

Markets were also reassured as Italy took concrete steps to deal with reining in its huge debt.

The Senate voted Friday to pass a budget bill containing economic reforms demanded by the European Union.

The lower Chamber of Deputies could take up the legislation as early as Saturday, which paves the way for the resignation of premier Silvio Berlusconi, who was seen as an obstacle to meaningful economic reforms.

And in Athens, Papademos was preparing to name his cabinet Friday, a day after being appointed to head an interim coalition government that will push through a new European debt deal and secure continued bailout funding to prevent a catastrophic default.

Stock markets are heading for a negative week after Italy became the flashpoint for European government debt crisis worries and markets demanded much higher amounts to buy the country’s bonds amid a lack of confidence that the country can deal with its huge debts of €1.9 trillion, which is too big for Europe’s current bailout facility to handle.

However, expectations that Monti will lead a post-Berlusconi government has helped calm those jitters, and Italy’s 10-year bond yield was now down below the seven per cent threshold that eventually forced Greece, Ireland and Portugal to seek bailouts. It fell another 0.17 percentage point Friday at 6.62%.

Oil prices headed higher for a second day, with the December contract on the New York mercantile Exchange up 29 cents to US$98.07 a barrel.

Crude has soared about 30% from US$75 on Oct. 4, on optimism Europe will be able to at least temporarily keep its debt problems from sparking a global financial crisis, though jitters re-emerged over the last two weeks.

Falling crude inventories in the U.S. and Europe have also helped boost prices.

Metal prices also advanced as December copper on the Nymex edged up two cents to US$3.40 a pound.

Bullion also rose while the December contract gained $13.60 to US$1,773.20 an ounce.

European markets were also positive with London’s FTSE 100 index ahead 0.6%, Frankfurt’s DAX was up 1.27% and the Paris CAC 40 gained 1.18%.

Earlier in Asia, Japan’s Nikkei 225 index closed up 0.2%, Hong Kong’s Hang Seng gained 0.9% and mainland China’s Shanghai Composite Index rose marginally.

In earnings news, diversified investment firm Brookfield Asset Management Inc. (TSX:BAM.A) reported third-quarter net income of US$716 million, or 36 cents per share, from $342 million, or 16 cents per share a year earlier. Revenue increased to $4.58 billion from $3.55 billion.

Treated lumber company Stella-Jones Inc. (TSX:SJ) said quarterly net income grew to $16.6 million, or $1.03 a share. That’s an increase from $12.4 million, or 78 cents per share, a year ago. Sales rose to $181.8 million from $161.3 million.