North American market look set to rise at Wednesday’s open as oil prices retreat and M&A action boosts stocks.

Light, sweet crude-oil prices were down 32¢ to US$66.74 in electronic trading Wednesday. The U.S. government will report its weekly inventory report today, which is expected to show a solid build in oil stockpiles as warm weather persists in the U.S. Northeast.

Boston Scientific signed papers that would make it the official acquiring company for Guidant, in a deal worth US$27 billion, beating out Johnson & Johnson.

Late yesterday, Walt Disney agreed to buy animation studio Pixar for US$7.4 billion.

Earnings reports are due today from companies like BellSouth, Conoco Phillips, and Qualcomm.

So far, about a quarter of the companies in the S&P 500 have reported.

In economic news, the National Association of Realtors will report U.S. existing-home sales for December, with expectations calling for a 1% decline. In November, existing homes sales fell 1.7%.

The Canadian dollar opened at US87.02¢, up 0.25 of a cent.

Overseas, European stocks gained ground, helped by a positive outlook from German software company SAP. SAP posted a 14% rise in fourth-quarter net profit and said it expects to generate strong sales growth in 2006.

The German DAX 30 rose 1%, while the UK’s FTSE 100 increased 0.7%.

In Asia, markets were mixed, with the bellwether Nikkei 225 closing just 0.01% higher in Toyko, while in Hong Kong, the Hang Seng slipped 0.1%.

Toronto stocks fell Tuesday, as resource stocks pulled back and the market absorbed news of a rate hike from the Bank of Canada and a Conservative-led minority government in Ottawa.

The S&P/TSX composite index lost 41.02 points, or 0.35%, to finish at 11,692.35.

The Bank of Canada raised its key rate a quarter point to 3.75%, but its accompanying press release left investors with the impression that the central bank’s recent rate hikes might soon come to an end.


The junior S&P/TSX Venture composite index finished up 0.25% to 2,465.71.

In New York, markets rose modestly on positive earnings news from United Technologies Inc and McDonald’s Corp.

The Dow Jones industrial average rose 23.45 points, or 0.22%, to 10,712.22, the S&P 500 added 3.04 points, or 0.24%, to 1,266.86, and the tech-heavy Nasdaq composite index gained 16.78 points, or 0.75%, to 2,265.25.