TSX set to advance amid rising confidence Greece can complete key bond swap

The bank posted net income of $835 million, or $1.93 per share, an increase from $763 million, or $1.80 per share, a year ago as CIBC benefited from stronger results in its Canadian retail banking business and mortgages.

The Canadian dollar gained 0.28 of a cent to 100.46 cents US ahead of the Bank of Canada’s latest interest rate announcement, scheduled for 9 a.m. EST. The bank is widely expected to leave rates at one per cent.

Traders will be scanning the Bank of Canada’s accompanying statement for indications as to when the bank will begin raising rates and for the central bank’s latest take on economic conditions.

U.S. futures racked up solid gains with the Dow Jones industrial futures ahead 76 points to 12,917, the Nasdaq futures were up 17.2 points to 2,626 and the S&P 500 futures climbed nine points to 1,361.8.

Traders also took in data showing that slightly more people applied for U.S. unemployment benefits last week. But the overall level stayed low enough to suggest the job market is strengthening.

The Labor Department said Thursday that weekly applications increased by 8,000 to a seasonally adjusted 362,000, the highest level since January.

The government will issue its February jobs report on Friday.

The TSX snapped a three-session losing run Wednesday that amounted to a loss of over 400 points amid worries about slowing Chinese growth and signs of slowing economic activity elsewhere such as the eurozone and Brazil.

But there has also been nervousness about whether Greece can get enough private creditors on side to complete a debt swap that would see those investors swap their Greek bonds for new ones with a 53.5% lower face value, lower interest rates and longer maturity dates. The hope is that by lowering the amount of debt it has to repay, Greece can gradually return to growth.

If not enough investors agree and the bond deal fails, the country could default on its debt in less than two weeks, prompting renewed turmoil in financial markets and knocking confidence in the global economic recovery.

By early Thursday, banks, pension funds and other investors holding more than half the €206 billion total debt in public hands had pledged to take part. New legislation will allow Greece to force holdouts into accepting the deal if overall participation is not high enough.

Investors have until 3 p.m. EST to sign up, though official results aren’t expected until Friday morning.

Commodities were higher across the board with the April crude contract on the New York Mercantile Exchange ahead 37 cents to US$106.53 a barrel. Prices shot up almost US$1.50 Wednesday following a report showing a lower than expected rise in U.S. inventories last week.

May copper rose four cents to US$3.80 a pound.

Bullion also made gains, up $13.60 to US$1,697.50 an ounce.

In other earnings news, Canadian Natural Resources Ltd. (TSX:CNQ) posted a profit of $832 million, compared to a net loss of $309 million a year ago. Revenue grew to $4.2 billion from $3.4 billion. The oil and gas producer also said that its quarterly dividend will rise 17% to 10.5 cents.

Grain handling and food processing company Viterra Inc. (TSX:VT) reported first-quarter net earnings of $77.7 million or 21 cents per share, compared with $100.7 million or 27 cents per share in the same 2011 period.

Cominar Real State Investment Trust (TSX:CUF.UN) said net income rose 9.2% to $26 million in the fourth quarter helped by gains made from acquisitions in 2011. Operating revenues grew to $78 million from $71.3 million. Cominar is the largest commercial property owner in Quebec.

European bourses were higher after the European Central Bank left its key interest rate unchanged Thursday at a record low of one per cent and held off on further measures to boost the shaky economy in the 17 countries that use the euro.

The ECB is waiting to see whether its more than C1 trillion in cheap, three-year loans to hundreds of banks handed out in December and again last week will result in more lending to businesses and consumers. The loans have helped steady wobbly banks and lowered borrowing costs for indebted governments like Italy and Spain.

London’s FTSE 100 index gained 1.29%, Frankfurt’s DAX rose 2.07% and the Paris CAC 40 climbed 1.99%.

Earlier in Asia, Japan’s Nikkei 225 index climbed two per cent, Hong Kong’s Hang Seng jumped 1.3% and South Korea’s Kospi edged up 0.9%.

In mainland China, the benchmark Shanghai Composite Index rose 1.1%.