Source: The Canadian Press

The Toronto stock market was set for a positive open Wednesday as commodity prices advanced on solid earnings reports and expectations the U.S. Federal Reserve will further boost the U.S. economy.

The Canadian dollar moved close to parity with the U.S. dollar, up 0.65 of a cent to 99.6 cents US.

The loonie has been steadily rising recently despite signs the Bank of Canada could be ready to take a pause in sending interest rates higher. The dollar has been supported by American dollar weakness and higher commodities.

The Canadian dollar last reached parity with the greenback at the end of April.

U.S. futures pointed to a strong open with the Dow Jones industrial futures up 79 points to 11,036, the Nasdaq futures gained 17 points to 2,054 while the S&P 500 futures climbed 8.9 points to 1,173.4.

Investors were encouraged by Tuesday’s release of the minutes to the last rate-setting meeting of the U.S. Federal Reserve three weeks ago.

The minutes showed that the Fed thinks U.S. growth will be lower than previously predicted and that deflation is becoming an increasing concern.

Policymakers thought that more support may have to be provided, though no real details of what may emerge were proffered.

Analysts said after the minutes came out that it’s no longer a question of if the Fed will make a move, but rather how much money it will pump into the U.S. economy by purchasing government bonds and taking other measures to encourage lending.

Stocks were also supported by better than expected earnings from Intel, the world’s biggest maker of microprocessors. Intel said after the markets closed Tuesday that its net income for the third quarter leaped 59% while sales rose 18% in an encouraging sign for the computer industry’s all-important holiday season. Intel’s fourth-quarter forecast suggests that demand is expected to stay solid.

And on Wednesday, J.P. Morgan Chase & Co. said that its third-quarter profit jumped 23% to US$4.42 billion as the banking giant was able to set aside less money to cover loan losses. CEO Jamie Dimon did warn that loan losses are still high in both the mortgage and credit card portfolios, but they are no longer rising like they did during the recession.

The bank earned US$1.01 per share, well ahead of the 90 cents per share that analysts polled by Thomson Reuters were expecting.

Commodity prices rose smartly with the November crude contract on the New York Mercantile Exchange ahead $1 to US$82.67 a barrel.

The December copper contract on the Nymex rose three cents to US$3.82 a pound while the December bullion contract in New York gained $11.10 to US$1,357.80 an ounce.

Commodity stocks in Toronto faltered on Tuesday amid reports that Chinese banks are being told to set aside more reserves in a new move to control lending, which in turn raised fears of a slowing economy.

Earlier in Asia, stocks advanced following the publication of the Fed minutes and Intel’s earnings.

Japan’s benchmark Nikkei 225 stock index gained 0.2% while South Korea’s Kospi added 0.4% while Australia’s S&P/ASX 200 was up modestly by 0.04%.

Hong Kong’s Hang Seng index closed up 1.5% while the benchmark Shanghai Composite Index rose 0.7%.

London’s FTSE 100 index rose 1.37%, Frankfurt’s DAX gained 1.73% while the Paris CAC 40 moved up 1.75%.

In other corporate news, telecom equipment testing company Exfo Inc. (TSX:EXF) rode a big increase in fourth-quarter revenue to post a US$5-million profit, reversing a year-earlier loss of US$1.2 million.

Aboriginal groups say they want to block a proposed takeover of Potash Corp. of Saskatchewan (TSX:POT) by international mining giant BHP Billiton. Chief Perry Bellegarde of the Little Black Bear First Nation in southeastern Saskatchewan is leading a group of chiefs who feel aboriginals have been ignored in the takeover talks. Bellegarde said the chiefs will seek a court injunction to stop the BHP’s US$38.6-billion bid until First Nations people can be at the table.