Source: The Canadian Press

The Toronto stock market headed for a higher open Thursday after Germany voted in favour of a strengthened bailout fund to help European countries stuck in debt crises.

The European debt crisis has weighed heavily on markets recently over fears that Greece is on the brink of a default, which would send shock waves through the global economy, particularly in Europe, and wreak havoc on the continent’s banking sector.

The Canadian dollar was higher, up 0.16 of a cent to 97 cents US.

U.S. futures also signalled a positive start to the day with the Dow Jones industrial futures up 58 points to 11,034, the Nasdaq futures rose 12 points to 2,230.5 and the S&P 500 futures climbed 6.5 points to 1,155.2.

The German lawmakers were voting on European leaders’ decision in July to increase the effective lending capacity of the so-called European Financial Stability Facility, or EFSF fund to euro440 billion. It would also give it new powers, such as buying the bonds of shaky countries or lending money to governments before they get into a full-blown crisis.

The German vote means the country in the future will be guaranteeing loans to the bailout fund of up to euro211 billion, rather than euro123 billion so far.

The Slovenian and Finnish parliaments also passed similar measures earlier this week.

Stock markets have been volatile and closed sharply lower Wednesday after German Chancellor Angela Merkel hinted that the second Greek bailout package might have to be renegotiated. Merkel didn’t rule out altering the terms to the euro109 billion package, saying the decision must be based on how Greece’s debt inspectors, the so-called troika, judge Athens’ recent austerity efforts.

The TSX lost 235 points Wednesday while the Dow fell 180 points.

The TSX is still down almost 20% from its highs of early March amid fears that the global economy is slipping back into recession, which would lower demand for oil, copper, coal, wood and many of the resources Canada produces. That would weaken exports and profits and further depress share prices on the resource heavy TSX.

Oil prices headed higher with the November crude contract on the New York Mercantile Exchange up 27 cents to US$81.48 a barrel.

Metal prices again retreated as the December bullion contract slipped $1.20 to US$1,616.19. The December copper declined five cents to US$3.20 after closing Wednesday at its lowest level since August, 2010. Copper is widely considered a proxy for the overall economy.

Earlier in Asia, Japan’s Nikkei 225 index finished up one per cent, South Korea’s Kospi index shot up 2.7%, China’s Shanghai Composite Index dropped 1.1% while markets in Hong Kong were closed due to severe weather.

European bourses were generally weak as London’s FTSE 100 index was off 0.72%, Frankfurt’s DAX dipped 0.12% and the Paris CAC 40 gained 0.07%.

In corporate news, ATS Automation Tooling Systems Inc. (TSX:ATA) said Wednesday that its troubled solar-energy subsidiary Photowatt France will take a $24-million accounting hit in the current quarter as the result of terminating contracts with some of its suppliers. ATS said current prices for silicon and wafers have fallen below what Photowatt France would have paid over the next six years under the contracts with its suppliers.

Petrobank Energy and Resources Ltd. (TSX:PBG) said Thursday it has suspended operations at its heavy oil recovery demonstration project in Conklin, Alta. The company said it is looking at whether to integrate the project into its wider May River operations or abandon it entirely.

Nokia Corp. on Thursday announced a further 3,500 job cuts by 2012 as the Finnish cellphone maker strives to save costs while its global market share continues to fall in stiff competition against rivals.