Source: The Canadian Press

The Toronto stock market headed for a positive open Tuesday amid rising oil and gold prices and data showing rising inflation from China.

The Canadian dollar was higher against the greenback, up 0.29 of a cent to 101.48 cents US.

U.S. futures pointed to a flat start to the session as investors await data on January retail sales.

The Dow Jones industrial futures added a point to 12,225, the Nasdaq futures were unchanged at 2,382 while the S&P 500 futures were down 0.9 of a point to 1,327.

Oil prices rose above $85 a barrel Tuesday as violent street protests in Iran raised fears crude supplies could be disrupted from one of world’s biggest producers.

The March crude contract on the New York Mercantile Exchange gained 44 cents to US$85.25 a barrel.

Iran is the second-largest oil exporter in the Organization of Petroleum Exporting Countries behind Saudi Arabia.

Bullion also advanced with the April gold contract on the Nymex ahead $7.90 to US$1,373 an ounce.

But copper prices backed off somewhat after data showing a sharp rise in Chinese exports helped push the metal to a fresh record close on Monday. The March contract in New York dipped three cents to US$4.60 a pound.

On Tuesday, China reported that its inflation rate hit 4.9% in January, up from 4.6% the month before. The increase was lower than the 5.4% predicted but analysts said that was largely due to technical changes related to the weighting of food in the overall measure.

Beijing has raised interest rates three times since October as it tries to dampen down on inflationary pressures and cool an overheating economy.

Such moves have concerned investors around the world as the Chinese economy has been the main pillar of global growth over the last several years.

Earlier in Asia, Tokyo’s benchmark Nikkei 225 stock average rose 0.2% while Chinese shares ended flat.

The benchmark Shanghai Composite Index was virtually unchanged while the Shenzhen Composite Index edged 0.04% lower, Hong Kong’s Hang Seng dropped one per cent South Korea’s Kospi fell 0.2% and Australia’s S&P/ASX 200 slipped 0.1%.

London’s FTSE 100 index dipped 0.08%, Frankfurt’s DAX was up 0.12% while the Paris CAC 40 gained 0.38%.

On the corporate front, Canadian Natural Resources Ltd. (TSX:CNQ) said Monday it won’t be able to resume any production at its badly damaged Horizon oilsands upgrader until the second quarter of this year. An explosion and fire ripped through the facility north of Fort McMurray, Alta., on Jan. 6.

Almost 3,500 unionized shopcraft, office, clerical, and mechanical workers at Canadian Natilonal Railways (TSX:CNR) have overwhelmingly approved collective agreements with the railway and one of its subsidiaries that will increase pay scales by 11.4% over four years. The deal also covers 575 owner-operator truck drivers for CNTL, a CN subsidiary.

Husky Energy Inc. (TSX:HSE), a major integrated oil and gas producer, said Tuesday that fourth-quarter profits dropped to $305 million, or 35 cents per share, from $320 million, or 38 cents per share a year ago.