Source: The Canadian Press

The Toronto stock market headed for a positive opening Tuesday amid higher copper and gold prices while investors keep an eye on another day of big anti-government protests in Egypt.

Risk aversion receded with oil prices moving lower and the Canadian dollar gaining against the greenback, up 0.43 of a cent at 100.28 cents US.

U.S. futures also indicated a higher opening ahead of a key reading of the U.S. manufacturing sector, with the Dow futures up 25 points at 11,865. The Nasdaq futures rose 12.25 points to 2,292 and the S&P 500 futures were ahead 4.9 points at 1,287.

The Institute for Supply Management’s manufacturing index is expected to show higher expansion in January at 57.9, up from 57 in December.

Bullion prices edged higher with the April contract on the Nymex up $2.90 at US$1,337.40 an ounce, while March copper added three cents to US$4.49 a pound.

Oil prices relaxed after surging about eight per cent over the last two sessions on worries that unrest in Egypt could spread or force a closure of the Suez Canal, a key route for oil tankers and cargo ships as they steer from the Persian Gulf to the major oil-consuming countries in Europe.

On Tuesday, the March crude contract in New York eased 76 cents to US$91.43 a barrel.

Meanwhile, Standard & Poor’s became the second major credit agency in as many days to downgrade its rating on Egypt. The agency warned Tuesday that the political instability and unrest will hamper Egypt’s economic growth and hurt its public finances.

S&P says it expects violent demonstrations will persist despite the appointment of a new vice-president and the dismissal of the previous government by President Hosni Mubarak. As a result, it reduced its long-term debt rating on Egypt by one notch to BB.

On Monday, Moody’s also downgraded its view on the country.

Investors also looked ahead to two major economic events later in the week.

The European Central Bank makes its monthly interest rate decision Thursday. The markets will be closely monitoring comments from ECB chief Jean-Claude Trichet to see if he ratchets up his comments about inflation, which is now running at 2.4% in the eurozone — above the ECB’s target of “close to, but below” two per cent.

The debt crisis has not gone away, experts warn, despite an easing in bond market tensions and recent signs that EU policy-makers are preparing a more comprehensive response.

And on Friday, the U.S. non-farm payrolls report for January will be released. Investors are looking for the U.S. economy to have created at least 135,000 jobs.

Canadian jobless figures also come out Friday and economists forecast the economy cranked out another 21,000 jobs last month.

Overseas, the Shanghai Composite index inched up 0.3% while Japan’s Nikkei 225 stock average rose 0.4%.

Hong Kong’s Hang Seng index added 0.2% and South Korea’s Kospi rose 0.1%.

European bourses also advanced as Standard & Poor’s gave Spain a welcome boost by affirming its AA debt rating on the country. However, S&P said the country’s rating will remain under pressure over the months to come from the high level of private sector indebtedness, the economy’s competitiveness and tough labour market conditions.

London’s FTSE 100 index gained 0.97%, Frankfurt’s DAX gained 1.06% while the Paris CAC 40 rose 0.91%.

In corporate news, BP announced Tuesday it is resuming dividend payouts for the first time since the Gulf of Mexico well disaster, despite suffering its first full-year loss since 1992, and plans to sell off almost half of its U.S. refinery business. BP said a stronger than expected end to 2010, in which high oil prices lifted fourth quarter profit by 30%, was not enough to avoid a full-year loss of US$3.7 billion. Its shares were down about 1.5% in pre-market trading in New York.

Pure Technologies Ltd. (TSXV:PUR), an international asset management technology and services company, says it expects full-year revenue to increase more than 50% in 2010, reaching levels around $45 million. The outlook came as the company reported that revenue was more than $16 million during the fourth quarter, versus $13 million a year ago.