U.S. stock futures looked poised to extend Tuesday large gains today, with another wave of earnings due for release.

Light sweet crude for September delivery was off 46¢ at US$121.73 a barrel in morning action on the New York Mercantile Exchange ahead of a weekly inventory report from the U.S. Energy Department.

Troubled U.S. mortgage firms Fannie Mae and Freddie Mac will be in focus after the Securities and Exchange Commission late Tuesday extended rules forbidding short-selling on 17 Wall Street firms, including the two housing giants.

Here at home, Statistics Canada said the significant increase in price for petroleum in June pushed up the price index for manufactured goods by 1.3% from May and 5.4% from a year ago. The price index for raw materials was also affected, rising 4.4% from May and 31.9% from a year ago.

The Canadian dollar opened at US97.74¢, up 0.06 cent from Tuesday.

In earnings news, Enbridge Income Fund reported a quarterly profit of $4.6 million, up from $3 million a year ago, as the pipeline trust’s revenue increased seven per cent to $72.4 million.

Miranda Technologies Inc. more than doubled its second-quarter net income to $4.1 million as sales increased 23% to $34.2 million.

Overseas, the FTSE index showed a gain of just over 1% early in the afternoon in London, rising 55.7 points to 5,375.1. The German DAX was up 0.5% and the French CAC-40 added one%.

The Japanese Nikkei 225 index rose 1.6% to 13,367.79, after losing 1.5% the day before.

Hong Kong’s Hang Seng index climbed 1.9% to 22,690.60.

The benchmark index of the Toronto Stock Exchange posted a slight gain on Tuesday as Teck Cominco’s $14.1 billion offer for Fording Canadian Coal Trust and a gain by financials offset sliding energy and gold shares.

The S&P/TSX composite index rose 38.59 points, or 0.29%, at 13,342.55. Six of the 10 main TSX sectors advanced.

Fording shares soared $.6.55, or 7.8%, to $90.35 after Teck said it would buy the company in a cash and stock deal. Teck shares were up $2.44, or 6%, to $42.85.

The junior S&P/TSX Venture composite index slipped 18.46 points, or 0.84%, to end at 2,168.04.

The Canadian dollar edged down 0.07¢ from Monday’s close to finish at US97.68¢.

In New York, U.S. stocks rebounded on Tuesday on falling oil prices and news of Merrill Lynch’s latest writedowns and share sale.

The Dow Jones industrial average rose 266.48 points, or 2.39%, at 11,397.56. The S&P 500 gained 28.82 points, or 2.33%, at 1,263.19. The tech-heavy Nasdaq composite index rose 55.40 points, or 2.45%, at 2,319.62.

Merrill Lynch jumped nearly 8% after coming into trade on the defensive after the brokerage said late on Monday it will write down US$5.7 billion and raise US$8.5 billion by selling new stock.