North American stocks are pointing to a higher start Wednesday, helped by merger activity and a recovery in Asian markets after the Thai government’s reversal of foreign investment rules.

In M&A news, Ericsson agreed to buy Redback Networks for US$2.1 billion cash, an 18% premium to Tuesday’s close. The deal in part will allow the Swedish telecommunications equipment maker to more closely compete against Cisco Systems and Juniper Networks.

TV and film company Alliance Atlantis Communications Inc. is for sale. The Toronto-based entertainment firm said today that the company and its controlling shareholder, Southhill Strategy Inc., recently sought expressions of interest from selected potential buyers.

Arcelor Mittal continued steel sector consolidation with its deal to buy Mexico’s Sicartsa for US$1.44 billion from Grupo Villacero.

In earnings news, FedEx said its second-quarter net income rose 8.5% to US$511 million, or $1.64 a share, from US$471 million, or $1.53 a share in the year-earlier period. The delivery company also tightened its 2007 earnings outlook.

Quarterly results from Nike and Bed Bath and Beyond are due after the close of trading,

In economic news, Canadian wholesale sales edged down slightly in October, leading the industry to its first back-to-back monthly declines in two years. Lower sales of automotive products were responsible for most of October’s decrease.

Statistics Canada today reported that wholesale sales slipped a further 0.2% in October to $41.6 billion, after falling 1.8% in September.

The Canadian dollar opened at US86.82¢, up 0.1 of a cent.

Crude-oil prices were steady at US$63.46 a barrel after Tuesday’s gains, with weekly energy data on tap. Analysts expect gasoline inventories to rise.

Asian stocks recovered from Tuesday’s losses after Thailand’s government reversed a decision on capital controls. Thailand’s benchmark SET index rallied 11%, though that didn’t fully offset Monday’s losses.

Hong Kong’s benchmark Hang Seng Index rose 275.57 points, or 1.5%, to finish at 19,240.12.

In Japan, the market closed at a seven-month high. Tokyo’s benchmark Nikkei 225 stock index climbed 234.16 points, or 1.4%, to 17,011.04 points.

European stock markets also rose on Wednesday.

The Toronto stock market ended flat Tuesday as rising gold and energy shares were off set by falling industrial stocks.

The S&P/TSX composite index slipped 3.66 points, 0.2%, to 12,781.54.

The junior S&P/TSX Venture composite index gained 4.98 points at 2,826.03.

U.S. indexes finished mixed as investors put the best face on a surge in U.S. wholesale inflation in November.

The Dow Jones industrial average finished up 30.05 points to 12,471.32, a new closing high. The Nasdaq was down 6.02 points to 2,429.55 as earnings from business software maker Oracle suggested the tech sector is overbought; the S&P 500 index added 3.07 points at 1,425.55.

The U.S. producer price index, which measures inflation pressures before they reach the consumer, jumped 2% last month, the biggest advance since a similar increase in November 1974.