Toronto stocks look to open higher

U.S. futures were higher while traders looked to the release of the latest readings on consumer confidence and home sales later in the morning.

The Dow Jones industrial futures gained 16 points to 12,990, the Nasdaq futures were two points higher to 2,602.75 to while the S&P 500 futures were ahead 2.5 points to 1,365.4.

The April crude contract on the New York Mercantile Exchange gained 54 cents to US$108.37 a barrel. The Brent crude contract in London was a dime higher at US$123.72 a barrel.

Crude oil had advanced more than $1.50 on Thursday amid data showing the number of people seeking unemployment benefits last week was unchanged and that the four-week average was the lowest in four years. Other data showed house prices rising at the end of last year.

But Iran has been widely responsible for crude jumping from $96 earlier this month amid growing tension over the country’s nuclear program and fears global crude supplies could be disrupted. Some analysts expect economic sanctions by the U.S. and Europe and countermeasures by Iran will help keep crude prices elevated this year.

Economists are voicing concern that a continuing runup in oil prices could threaten the fragile economic recovery in the U.S. and deepen a recession in Europe.

Metal prices also advanced amid speculation that local governments in China would relax restrictions on the property market and monetary authorities would tweak policy to stimulate growth. Copper prices are up more than three per cent this week after the People’s Bank of China announced last weekend it was lessening reserve requirements at banks to encourage lending. China is the world’s biggest consumer of copper, viewed as an economic barometer as it is used in so many businesses.

The March copper contract ahead two cents to US$3.83 a pound.

Bullion prices pulled back as the April contract shed $5.40 to US$1,780.90 an ounce.

Over the weekend, investors will be interested in what transpires at a meeting of the G-20 finance ministers and central bank governors in Mexico. While the gathering will focus on promoting global economic stability and growth, Europe’s debt crisis will remain a key topic.

In particular, European officials will press for countries like the U.S., China and the U.K. to allow the International Monetary Fund to contribute more money to eurozone rescue measures. Several countries are reluctant, however, to expose the IMF to more risk in Europe.

It was a light morning for earnings news.

Eldorado Gold Corp. (TSX:ELD) said profits nearly doubled to $88.8 million in the fourth quarter as the company benefited from higher prices. Revenues grew to $303.3 million from $213 million.

After the markets closed Thursday, Iamgold Corp. (TSX:IMG) on Thursday reported an eight per cent jump in profits for the fourth quarter of 2011 on the back of higher gold prices. Net earnings were $133.6 million, or 36 cents, compared to $124.1 million, or 33 cents during the same 2010 period. Revenues were $481.6 million, an increase from $440.9 million during the last three months of 2010, primarily due to a 19 per cent rise in realized gold prices to $1,638 per ounce.

And auto parts giant Magna International Inc. (TSX:MG) said it would raise its dividend 10% to 27.5 cents a share. The company also posted quarterly net profits that nearly doubled from a year ago to US$312 million, or $1.32 per share.

European bourses were positive as London’s FTSE 100 index added 0.07%, Frankfurt’s DAX gained 0.54% and the Paris CAC 40 rose 0.39%.

Earlier in Asia, Japan’s Nikkei 225 climbed 0.5%, South Korea’s Kospi added 0.6% and Hong Kong’s Hang Seng rose 0.1%.

China’s benchmark Shanghai Composite Index climbed 1.2% to its highest close in more than three months. The smaller Shenzhen Composite Index gained 1.4%.