CANADA STOCKS-TSX may open higher as U.S. strikes fiscal deal

Wed Jan 2, 2013 8:24am EST

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Jan 2 (Reuters) - Canada's main stock index looked set to open sharply higher, tracking global markets, after U.S. lawmakers reached the all-important deal to avert the fiscal crisis in the world's largest economy.

TOP STORIES

* The United States averted economic calamity on Tuesday when lawmakers approved a deal to prevent huge tax hikes and spending cuts that would have pushed the world's largest economy off a "fiscal cliff" and into recession.

* ArcelorMittal, the world's biggest steelmaker, will sell a 15 percent stake in one of its Canadian iron ore operations, raising $1.1 billion to help pay off debt at a time of sluggish demand.

* Manufacturing activity in Asia expanded in December as China's economy showed signs of revival but export demand was uneven, pointing to further sluggish growth for the region, business surveys suggest.

* Outgoing Italian Prime Minister Mario Monti said that the next government needs to have a broad parliamentary majority so that it can reduce the number of lawmakers, change the electoral law and overhaul the institutional system.

* The slowdown in euro zone factory activity deepened in December as new orders tumbled, a business survey showed, suggesting the economy may have slipped further into recession in the last quarter of 2012.

MARKET SNAPSHOT

* Canada stock futures traded up 1.63 percent

* U.S. stock futures , , were up around 1.29 percent and 1.97 percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 297.8418; rose 0.81 percent

* Gold futures : $1,687.5; rose 0.76 percent

* US crude : $93.3; rose 1.61 percent

* Brent crude : $112.24; rose 1.02 percent

* LME 3-month copper : $8,130.25; rose 2.51 percent

ON THE CALENDAR

* Major Canadian economic data includes RBC Manufacturing PMI

* Major U.S. events and data includes FOMC minutes, Markit manufacturing PMI and ISM

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