North American stocks are poised for a a sluggish start Wednesday ahead of a report on U.S. monetary policy from Federal Reserve Chairman Ben Bernanke and job cuts from DaimlerChrysler.

DaimlerChrysler said that its struggling Chrysler division will cut more than 13,000 jobs, including 2,000 positions in Canada.

The company said 1,100 Canadian jobs will be eliminated this year.

DaimlerChrysler AG said its fourth-quarter earnings plunged 40% to US$761 million on weaker demand from Chrysler brand autos.

Meanwhile, surging sales in December helped make 2006 the second best year ever for new motor vehicle dealers, Statistics Canada reported today.

New motor vehicle sales increased 5.6% in December. Strong demand for both passenger cars and trucks brought sales to 148,452 vehicles, the highest sales level since the peak in July 2005.

The gain in December helped to push total sales for 2006 to 1,666,327 vehicles, the second highest annual sales level on record. New motor vehicle sales rose 2.2% in 2006, following the 3.5% gain in 2005.

The Canadian dollar opened at US85.62¢, down 0.12 of a cent from Tuesday’s close.

South of the border, retail sales were flat in January, the U.S. Commerce Department reported today. . December sales surged 1.2%, revised higher from a previously reported 0.9% advance.

Fed chairman Bernanke is scheduled to deliver his report on monetary policy to the U.S. Senate Banking Committee at 10:00 ET.

In earnings news, , Coca-Cola reported a 22% decline in its fourth-quarter profit as results were weighed down by a noncash impairment charge related to Coca-Cola Enterprises. Revenue climbed 7% to US$5.93 billion.

In M&A news, Agnico-Eagle Mines has agreed to buy Vancouver’s Cumberland Resources Ltd., operator of the Meadowbank gold project in Nunavut, for about $690 million in shares.

Oil prices slipped Wednesday, falling 26¢ to US$58.80 a barrel, after a 2.2% jump the day before as traders awaited the release of weekly U.S. petroleum inventory data.

In Europe, markets were in a positive mood, Germany’s DAX rising 29.74 points to 6,925.08, the London-based FTSE 100 up 4.3 points to 6,386.10 and France’s CAC 40 index rising 19.65 points to 5,702.34.

In Asia, Tokyo’s Nikkei 225 index rose for a fourth session, adding 131.19 points, or 0.74%, to 17,752.64 – its highest close since May 9, 2000.

In Hong Kong, the benchmark Hang Seng index rose 77.66 points, or 0.4%, to 20,209.91.

North American stocks closed sharply higher Tuesday, as higher commodity prices boosted the Toronto market, and merger speculation moved the New York exchanges.

The S&P/TSX composite index gained 131.22 points, or 1.01%, to 13,171.22, largely reversing the losses of the two previous sessions.

The S&P TSX Venture Exchange closed up 2.98, or 0.10%, to 3,007.37.

In New York, a Times of London news report suggesting Alcoa was a possible takeover target gave the markets positive momentum.

The Dow Jones industrial average gained 102.30 points to 12,654.85, the S&P 500 rose 10.89 to 1,444.26, while the Nasdaq composite index gained 9.5 to 2,459.88.