North American markets are expected to open on a strong note Wednesday, despite uncertainty as to the outcome of the U.S. presidential election.

The tight race between U.S. President George W. Bush and John Kerry may hinge on the outcome in Ohio. With polls closed in every state, Bush was projected to have 254 electoral votes, 16 shy of the 20 required for a second term, while Kerry had 252. The counting in Ohio, with 20 electoral votes, was still outstanding, and provisional ballots could remain uncounted for days.

European indexes rose in early action after Bush supporters claimed imminent victory over Kerry.

London’s FTSE 100 share index was up 0.4% at 4,710.1, while in Paris the CAC 40 Index was 0.4% higher at 3,780.6. Frankfurt’s DAX index of blue-chip stocks rose by 0.3%, to 4,047.67.

In economic news, the U.S. Commerce Department is slated to report on factory orders in September at 10:00 ET. Economists are looking for a 0.5% increase.

In this morning’s earnings news, Time Warner reported a 7.8% drop in net profit in the third quarter and said it will set aside US$500 million in legal reserves related to government probes.

BCE posted a special charge of $985 million as 5,052 workers – 11% of its workforce — took advantage of buyouts announced earlier this year. The move resulted in a third-quarter profit of $82 million, or 9¢ a share, down from $446 million,or 49¢ per share, a year earlier.

Investors will also be paying close attention to Sun Life Financial Inc., following a report that the insurer has launched a probe into an alleged commission scam at one of its Toronto branches.

Shares in Bombardier may face selling pressure after Florida voters turned down a proposed multibillion-dollar high-speed train network to be built by a consortium led by the firm.

U.S. markets changed course abruptly Tuesday finishing in the red amid speculation about the election outcome, while a last-minute rally pushed Canadian markets into the black.

At close, the S&P/TSX composite index was up 12.71 points or 0.14% to 8,870.94, while the TSX Venture composite index slipped 9.41 points or 0.59% to 1,598.24.

In New York, the Dow Jones industrial average and S&P 500 had been higher for most of the session, heading for a sixth straight day of gains, but turned south sharply just after 2:30 p.m. ET on exit poll rumours. The Dow closed down 18.66 points or 0.19% to 10,035.73, while the tech-heavy Nasdaq composite index was up 4.92 points or 0.25% at 1,984.79, and the broader S&P 500 was almost unchanged, up 0.07 of a point to 1130.58.

The Canadian dollar was at US81.6¢ late in the day, down 0.20 of a cent.

In Toronto, financial and technology stocks saved the day for the TSX, which had been in positive territory for much of the day but took a sharp dive late in the afternoon before rallying in the final 20 minutes. Financial stocks were up 0.81%, while techs jumped 1.38%.