Source: The Canadian Press

The Toronto stock market was likely headed for a flat open Wednesday as investors digest two days of strong gains amid hopes that the political standoff in Egypt will be contained and resolved peacefully.

The Canadian dollar continued to gain against the American currency as traders’ appetite for risk rose, up 0.18 of a cent to 101.1 cents US. The loonie had closed below parity on Friday and Monday as investors looking for save havens bought into U.S. Treasurys and commodities such as oil.

U.S. futures indicated a weak open after New York markets rose sharply on Tuesday in the wake of a data from the Institute for Supply Management showing higher than expected expansion of the manufacturing sector during January.

The Dow industrial futures rose eight points to 11,981 a day after the blue chip index closed above the 12,000-mark for the first time since June 2008.

The Nasdaq futures were off 0.5 of a point to 2,322 and the S&P 500 futures added 0.1 of a point to 1,303.

Though Egyptian President Hosni Mubarak’ vow late Tuesday to not stand for president again in September has not stopped the protests, there is a feeling in the markets that a peaceful transition may be in the works.

The flight to commodities had sent the TSX up about 300 points over the last three sessions.

But commodity prices drifted lower Wednesday with the February crude contract on the New York Mercantile Exchange down nine cents to US$90.68 a barrel. Prices had spiked eight per cent over the Friday and Monday trading sessions on worries that Egyptian unrest could result in a closure of the Suez Canal.

Metals also declined as March copper in New York moved a penny lower from Tuesday’s latest record high close to US$4.53 a pound.

Bullion was also lower with the April contract down $4.40 to US$1,335.90 an ounce.

Meanwhile, investors also took in new developments in the European government debt crisis.

Standard & Poor’s downgraded its rating on Ireland, citing fears about the banking sector despite last November’s euro67.5 billion bailout.

The agency said Wednesday that it was cutting its rating on Ireland by one notch to A minus from A and warned that another downgrade could be enacted by April.

Overseas, Japan’s benchmark Nikkei 225 stock average gained 1.8% while Hong Kong’s Hang Seng advanced 1.8% .

Markets in China, Korea and Taiwan were closed Wednesday for the Chinese Lunar New Year.

London’s FTSE 100 index rose 0.61%, Frankfurt’s DAX dipped 0.02% while the Paris CAC 40 index was down 0.24%.

In earnings news, Suncor Energy Inc. (TSX:SU) reported fourth quarter net earnings almost tripled from a year ago to $1.353 billion, or 87 cents per common share. That was much higher than the 51 cents a share that analysts had expected.

Suncor became Canada’s largest energy company when it merged with Petro-Canada in 2009.

ATS Automation Tooling Systems Inc. (TSX:ATA) handed in a third-quarter loss of $11.9 million on charges related to restructuring its solar products division in France. The maker of machinery and equipment for industrial and automotive markets said the loss was equal to 14 cents per share, compared to a profit of $3.7 million or four cents a share a year ago.

Toymaker Mattel said its net income during the crucial holiday quarter slipped one per cent on higher costs even though revenue rose on strong sales of Barbie and Fisher-Price toys. Net income edged down to $325.2 million or 89 cents per share, from $328.4 million, or 89 cents per share last year. Analysts expected 86 cents per share, according to FactSet.

Whirlpool Corp., the world’s biggest appliance maker, said Wednesday its fourth-quarter profit rose 80% to US$171 million, mainly on lower costs and an income tax benefit. Sales fell in both North America and Europe, but strength in Latin America and Asia helped offset those weaknesses.