Stocks are looking to open higher Thursday ahead of an expected quarter-point rise in U.S. interest rates.

The U.S. Federal Reserve is scheduled to make its rate announcement at 14:15 ET and the central bank may indicate whether its long streak or rate increases is close to ending.

In this morning’s economic news, the U.S. economy grew at a faster pace in the first quarter, stronger than previously thought.

Gross domestic product rose at a 5.6% annual rate January through March, the U.S. Commerce Department said today. A month ago, Commerce estimated GDP grew by 5.3%.

Corporate profits were adjusted much higher, while gauges within the report indicated prices rose less than earlier believed.

Here at home, Statistics Canada reported that the Canadian economy advanced by 0.1% in April, matching the pace of the previous month. A rise in services output more than offset the decline in the production of goods.

Separately, StatsCan said raw materials prices rose sharply for the second consecutive month due to higher prices for crude oil and non-ferrous metals. Prices for manufactured goods at the factory gate edged up in May.

The Canadian dollar opened at US89.17¢, up 0.07 of a cent.

Among stocks to watch, U.S. investigators said traders at global energy giant BP secretly and illegally cornered part of the U.S. propane market in early 2004, driving up heating and cooking costs for millions of Americans.

In earnings news, ATI Technologies swung to a third-quarter profit of US$31.9 million, from a small year-earlier loss, as revenue jumped 23%.

Alcoholic beverages giant Diageo said comparable sales rose 6% and operating profit 7% in the year ending June 30, though shares fell as the operating profit forecast met expectations. Diageo rival Constellation Brands is due to release earnings after the close of trade on Thursday.

Overseas, Asian and European markets advanced.

The FTSE 100 was up 1% in London.

The benchmark Nikkei 225 index gained 235.04 points, or 1.58%, to finish at 15,121.15 points on the Tokyo Stock Exchange.

In Hong Kong, the blue-chip Hang Seng Index rose 122.56 points, or 0.78%, to 15,865.22.

Toronto stocks moved higher Wednesday, bouncing back somewhat after yesterday’s retreat, as gains in energy stocks and the information technology sector offset losses in materials and gold.

The S&P/TSX composite index gained 39.08, or 0.35%, to 11,332.32. Yesterday, the market dropped back 78.30.

Nortel Networks gained 10¢, or 4.27%, to $2.44 on heavy trading. On Tuesday, the company announced 1,900 job cuts and a restructuring of the firm’s pension plan that’s intended to reduce costs.

The S&P/TSX Venture composite index fell 9.46, or 0.37%, to 2,539.72.

In New York, investors cautiously bought back into the market after recent losses fuelled by inflation and interest rate concerns.

The Dow Jones industrial average closed up 48.82 points at 10,973.56. The S&P 500 rose 6.80 points to 1,246.00, while the Nasdaq composite index gained 11.59 points to 2,111.84.