Rising commodities to support TSX

U.S. futures also advanced with the Dow Jones industrial futures ahead 29 points to 13,224, the Nasdaq futures gained nine points to 2,711.75 and the S&P 500 futures were up 3.5 points to 1,392.2.

Key economic releases coming out Thursday morning include manufacturing surveys from the Philadelphia and New York branches of the U.S. Federal Reserve. Weekly jobless claims figures will also garner interest as investors weigh up whether the recent improvement in the U.S. jobs market is set to continue.

Oil prices headed higher with the April crude contract on the New York Mercantile Exchange ahead 27 cents to US$105.70 a barrel.

Metal prices also advanced with May copper up a penny to US$3.86 a pound.

Bullion prices improved after sustaining sharp losses this week amid a solid U.S. retail sales report for February and a positive economic outlook by the U.S. Federal Reserve. The April contract for bullion on the Nymex climbed $5.50 to US$1,648.40 an ounce.

Mining stocks led the way to a 160 point tumble on the TSX Wednesday. The drop followed two consecutive weekly losses on the TSX that have left the resource-heavy market up only 3.5% year to date.

In contrast, the Dow industrials are still up about eight per cent year-to-date.

But analysts had pointed out recently that the TSX had surged almost 14% from the recent lows of early October, 2011 and that a consolidation of these gains would not be surprising.

The recent poor performance on the TSX also followed sharp runups in the price of commodities this year.

Oil prices have risen from $98 at the beginning of February amid investor optimism an improving U.S. economy will boost crude demand and concerns about Iran’s nuclear program and whether Israel or the U.S. will stage a possible military strike against the country’s nuclear facilities.

Copper prices have surged 12% so far this year, partly on hopes for higher demand from China, the biggest consumer of the metal.

In earnings news, media company Quebecor Inc. (TSX:QBR.B) reported that profits grew 83% to $85.4 million or $1.34 per share in the fourth quarter led by strength in its telecommunications division. Adjusted income from continuing operations declined to $55.6 million in the fourth quarter, or 87 cents per share, falling short of analyst expectations for 89 cents per share, according to a poll by Thomson Reuters. Quebecor also said that it’s ready and able to move ahead with plans that would bring a National Hockey League team to Quebec City.

Tour operator Transat A.T. Inc. (TSX:TRZ.B) said quarterly losses grew to $29.5 million, or 77 cents per share, compared to a loss of $13.4 million, or 35 cents per share, a year earlier. On an adjusted basis, after-tax losses were 79 cents per share, higher than the 61 cents expected by analysts. Revenue increased to $829.3 million from $810.2 million.

European markets were mixed as London’s FTSE 100 index slipped 0.09%, Frankfurt’s DAX gained 0.26% and the Paris CAC 40 added 0.02%.

Earlier in Asia, a drop in the yen helped send Japan’s Nikkei 225 index up 0.7% to its highest close since late July. Hong Kong’s Hang Seng closed 0.2% higher.

But mainland Chinese shares fell, a day after Chinese Premier Wen Jiabao said curbs that have started to cool surging housing prices will remain in place despite complaints they might worsen an economic slowdown. The benchmark Shanghai Composite Index lost 0.7% and the Shenzhen Composite Index shed 0.8%.