The Toronto stock market was in for a positive open Thursday and commodity prices advanced after the U.S. Federal Reserve’s latest move to support the U.S. economy.

The Fed announced Wednesday that it would keep interest rates near zero until late 2014 in a sign that the economy needs considerable support for some time to come. But the move also reassured investors that the Fed is willing to undertake stimulus to encourage growth.

The Canadian dollar could be headed for its first close above parity with the U.S. dollar for the first time since the end of October, rising 0.2 of a cent to 99.85 cents US. The loonie earlier went as high as 100.05 cents US as the Fed move encouraged traders to take on more risk.

U.S. futures were positive with the Dow Jones industrial futures ahead 35 points to 12,723, the Nasdaq futures gained 3.8 points to 2,464.2 and the S&P 500 futures were ahead 4.3 points to 1,324.5.

There was also positive news out of Europe.

Italy easily raised €5 billion from the markets Thursday in a pair of bond auctions that saw a sharp drop in borrowing rates.

The sale showed healthy investor appetite in the first test of market sentiment since ratings agency Standard & Poor’s on Jan. 13 dropped Italy’s credit rating by two notches.

Italy has seen its borrowing costs ease in recent weeks, after yields on benchmark 10-year bonds pushed to the perilous seven-per cent level last year. The 10-year bonds were trading at 6.04% on the secondary market after Thursday’s auction.

And Greece resumed talks with its private creditors in order to get a deal to avoid a potentially disastrous default.

The €100 billion private debt writedown is a vital condition of a new bailout for Greece, which has been relying on international rescue loans since May 2010.

Under the deal, banks and other private sector investors would swap their Greek government bonds for new ones with half the face value, longer repayment deadlines and potentially lower interest rates.

If the writedown fails, Greece will be unable to repay a €14.5 billion bond on March 20.

Prices for oil and metals ran up smartly on Thursday with the February crude contract on the New York Mercantile Exchange ahead $1.33 to US$100.73 a barrel.

The March copper contract in New York gained seven cents to US$3.90 a pound. Copper prices have surged more than 13% during January amid signs of an improving economic conditions in the U.S. and China, which is the world’s biggest consumer of copper. The metal has a reputation as an economic bellwether since it is used in so many businesses.

February bullion was up $16.80 to US$1,716.90 an ounce.

European markets ran ahead with London’s FTSE 100 index up 1.05%, Frankfurt’s DAX gained 1.29% and the Paris CAC 40 advanced 0.86%.

In Asia, gains were generally more muted. South Korea’s Kospi rose 0.3% and Hong Kong’s Hang Seng Index jumped 1.6% on its first trading day since the Chinese New Year holiday. Benchmarks in Thailand, Singapore and New Zealand also rose.

Japan’s Nikkei was 0.4% lower.

Markets in Taiwan and mainland Chinese remained closed for the Chinese New Year. Markets in India and Australia were closed for public holidays.

It was also a busy earnings day for Canadian companies.

Canadian Pacific Railway Ltd. (TSX:CP) reported fourth-quarter net income of $221 million, an increase from $186 million in the same period a year earlier. Revenue grew to $1.4 billion from $1.29 billion.

Potash Corporation of Saskatchewan Inc. (TSX:POT) said its profits grew in the fourth quarter to US$683 million or 78 cents a share, up from $508 million a year ago. However, earnings were 11 cents short of expectations.

Sales grew to $1.87 billion from $1.81 billion.

Cogeco Inc. (TSX:CGO) said its first-quarter profits grew 20% to $47.9 million, or $1.11 per share, versus $39.8 million, or 97 cents per share, a year earlier. Revenues increased 13% to $387.5 million from $341.7 million.

Elsewhere, Mobile phone maker Nokia Corp. posted a fourth-quarter net loss of C1.07 billion as sales slumped 21% even as the company’s first Windows smartphones hit markets in Europe and Asia.

And Colgate-Palmolive is posting nearly a six per cent decline in its fourth-quarter net income, citing higher costs to make and package its products. The company made US$590 million in the October to December period Thursday, down from $624 million. That translates to $1.21 per share, less than the $1.29 that analysts polled by FactSet had predicted.

Revenue rose five per cent to $4.17 billion.