Source: The Canadian Press

The Toronto stock market was set to open higher Tuesday as commodity prices found lift for a second day in the wake of strong manufacturing data in China and the U.S.

The Canadian dollar gained ground as the U.S. dollar lost strength ahead of a much-anticipated U.S. Federal Reserve meeting that is expected to result in a big bond-buying program to support the economy. The loonie rose 0.57 of a cent to 98.99 cents US.

U.S. futures also advanced ahead of Wednesday’s announcement from the Fed and investors look to the outcome of the midterm elections.

The Dow Jones industrial futures gained 49 points to 11,139, the Nasdaq futures advanced 9.75 points to 2,139 while the S&P 500 futures were ahead 6.4 points to 1,190.

The consensus in the markets is that the central bank will announce another round of quantitative easing in the form of monthly asset purchases of around US$100 billion a month over the next six months at the conclusion of its two-day meeting on Wednesday.

Meanwhile, the elections are expected to give Republicans at least partial control of Congress by winning control of the House of Representatives. Such a victory could set up a scenario that leads to gridlock in Washington, meaning there could be a slowdown in new government spending and regulatory reform.

Oil prices advanced for a second day after manufacturing data from China and the U.S. pointed to continuing expansion in the sector.

The December crude contract on the New York Mercantile Exchange rose 57 cents to US$83.52 a barrel.

Copper prices also advanced with the December contract on the Nymex ahead three cents to US$3.81 a pound.

The December bullion contract in New York rose $2.90 to US$1,353.50 an ounce.

Earlier in Asia, markets mostly advanced.

Japan’s benchmark Nikkei 225 stock index rose 0.1%, while Hong Kong’s Hang Seng index added 0.1%.

Chinese shares edged lower on profit-taking amid worries over possible shifts in monetary policy to counter excess liquidity. The benchmark Shanghai Composite Index closed 0.3% lower.

London’s FTSE 100 index gained 1.03%, Frankfurt’s DAX was up 0.78% and the Paris CAC 40 climbed 0.82%.

In corporate news, Potash Corp. of Saskatchewan (TSX:POT) will be in focus following published reports that Investment Canada has tentatively approved BHP Billiton’s hostile US$38.6 billion bid for the fertilizer giant.

However, on Tuesday, Industry Minister Tony Clement said “no recommendation has been provided by Investment Canada officials.”

Talisman Energy Inc. (TSX:TLM) reported net income in the third quarter of $121 million, a four-fold increase from $30 million a year earlier. For the first nine months of the year, Talisman reports net income of $952 million, up from $548 million in the same period last year. The Calgary-based oil and gas company says the increase is primarily due to increased commodity prices.