North American markets are set to jump at the open fuelle by investor enthusiasm about Microsoft’s dividend and buyback plans, and Fed chief Alan Greenspan’s bullish assessment of the U.S. economy.

On Tuesday, Microsoft saidit will make a one-time dividend payment this year of US$32 billion, buy back up to US$30 billion of its stock over the next four years and double its annual dividend to US$3.5 billion.

In today’s earnings news, J.P. Morgan reported a US$548 million net loss due to a US$2.3 billion charge for litigation reserves.

Rogers Communications’s said its second-quarter profit fell by 90% to $5.5 million and its subsidiary Rogers Wireless off by 6% at $53.9 million.

There are no major economic releases from Canada or the United States this morning.

At midday, European markets are higher with London’s FTSE 100 up 1.1% at 4,385.20 and Frankfurt’s DAX 30 ahead 1.4% to 3,892.71.

Overnight in Asia, Tokyo’s Nikkei advanced 175.49 points, or 1.6%, to 11,433.86 and Hong Kong’s Hang Seng Index soared 271.48 points, or 2.2%, to close at 12,395.11.

The main Canadian index and New York markets rose Tuesday on positive indications about the economy from central bankers on both sides of the border.

In Toronto, the S&P/TSX composite index added 3.74 points to close at 8,418.54. Investors in Canada were buoyed by the Bank of Canada’s decision to keep its interest rate steady.

Meanwhile, the TSX Venture Exchange – the day’s only loser – fell 16.16, or 1.05%, to 1,527.14.

On Walls Street, stocks posted their biggest gains since late June after upbeat comments from U.S. Federal Reserve Chairman Alan Greenspan.

The tech-heavy Nasdaq composite index added 33.24 points, or 1.76%, to 1,917.07. The Dow Jones industrial average rose 55.01 points to 10,149.07, while the S&P 500 added 7.77 points to 1,108.67.