TSX poised to open higher

U.S. futures were also higher with the Dow Jones industrial futures ahead 65 points to 12,453, the Nasdaq futures were up 13.8 points to 2,380.8 while the S&P 500 futures rose eight points to 1,296.2.

There was relief on financial markets as Italy saw its borrowing costs drop sharply while easily selling C12 billion in bonds in its first test of market sentiment of the new year.

Among other issues, investors bought C8.5 billion in 12-month bonds at a yield of 2.735%, sharply down from last month’s rate of 5.95%.

And Spain successfully raised nearly C10 billion in debt auctions Thursday in a sign of investor confidence in the new conservative government’s attempts to get a grips on the country’s debt.

The treasury said demand for the three bonds, which mature in 2015 and 2016, was strong and the amount sold was double the maximum sought.

Borrowing costs shot up late last year as markets grow increasingly frustrated with the lack of a comprehensive plan to deal with the eurozone’s debt crisis.

At one point, Italy was forced to offer yields of over seven per cent for 10-year bonds, a level considered unsustainable in the long run.

Meanwhile, the European Central Bank said it was leaving its key interest rate unchanged at one per cent following two consecutive rate cuts.

Bank President Mario Draghi will answer questions later in the morning at a news conference about his economic outlook and give any clues about whether the bank will cut further in order to help the European economy through sharply deteriorating economic conditions. The ECB has never taken its benchmark rate below 1.0% in its 13-year history.

Britain’s Bank of England also left rates unchanged.

Commodity prices were higher with the February crude contract ahead $1.22 to US$102.09 a barrel.

Metal prices also ran up sharply with March copper up seven cents to US$3.62 a pound. Copper has surged about five per cent this week on trade data from China that suggested authorities could be ready to ease lending requirements to encourage growth. The metal, considered a global economic bellwether because it is used in so many businesses, also got lift from solid revenue figures and a positive outlook from resource giant Alcoa Inc.

Bullion prices rose for a third day with the February contract up $18 to US$1,657.60.

European bourses were higher with London’s FTSE 100 index ahead 0.42%, Frankfurt’s DAX gained 1.53% and the Paris CAC 40 was ahead 1.02%.

Earlier in Asia, Japan’s Nikkei 225 Index fell 0.7% while Hong Kong’s Hang Seng drifted 0.3% lower and Australia’s S&P ASX 200 fell 0.2%.

Mainland Chinese shares also fell, with the benchmark Shanghai Composite Index down marginally and the smaller Shenzhen Composite Index shedding 0.4%.

In corporate news, Connacher Oil and Gas Ltd. (TSX:CLL) said chief executive officer Richard Gusella is leaving the company barely a week after a big shakeup in its executive offices. Gusella had taken on the additional responsibilities last week of president and interim chief operating officer, filling the roles after two executives departed.

Bauer Performance Sports Ltd. (TSX:BAU) credits a big improvement in revenue, led by hockey equipment sales, for turning last year’s second-quarter loss into a US$8.2-million profit this time around, compared with a net loss of US$1.9 million. Revenue soared 27% to US$100.3 million.

An unspecified number of “interested parties” are doing due diligence on a possible takeover or merger transaction with Jaguar Mining Inc. (TSX:JAG), but the company says there is no assurance it will result in a change of control. The company, which has gold operations in Brazil, has said it wants to evaluate possible merger or takeover proposals as to whether they might be more desirable than the continued operation of the company on a stand-alone basis.