North American markets look set to open higher Thursday after a report showed a jump in U.S. productivity.

U.S. productivity growth nearly doubled in the third quarter to an annual rate of 4.1%, the best showing in more than a year and much higher than the 2.7% economists had expected. Labor costs slipped 0.5%, after a 1.8% rise in the second quarter.

A separate report showed jobless claims unexpectedly fell by 8,000 last week.

Later this morning, reports are due on U.S. factory orders and the ISM services index.

There are no major economic announcements from Statistics Canada today.

The Canadian dollar opened at US84.86¢, up 0.02 of a cent.

Federal Reserve Chairman Alan Greenspan is scheduled to testify on the economic outlook before a joint congressional panel at 10:00 ET. Investors will be paying close attention to see if Greenspan signals further tightening of the Fed;s policy on interest rates.

U.S. retailers released their October sales reports this morning. Same-store sales jumped 4.3% at Wal-Mart, 5.9% at Target and 10% at Costco Wholesale, but skidded over 10% at Pier 1 Imports.

In today’s earnings news, Enbridge Inc. raised its dividend while reporting a sharp drop in net profits, mainly from a one-time gain last year. The company said its board had approved a 15% increase in its common share dividend to 28.75¢ a share.

In Europe, stocks were higher at midday following earnings from some big names including Unilever, which reported that its net jumped 26%, helped by the sale of a cosmetics unit.

The European Central Bank held interest rates steady at 2%.

London’s FTSE 100-share index was up 0.7%, while Frankfurt’s Xetra Dax index gained 0.5%.

Financial markets were closed in Japan, India, Indonesia, Malaysia and Singapore.

In Hong Kong, the blue-chip Hang Seng index rose 4.11 points, or 0.03%, to 14,601.59.

Toronto stocks shot up Wednesday, powered by a hot energy sector and strong earnings reports.

The S&P/TSX composite index finished up 194.90 points, or 1.88%, to 10,585.65.

Volume on the senior exchange was 258 million shares.

Nine of the 10 TSX main sub-groups ended higher, with the energy sector gaining a remarkable 4.72%

Talisman Energy Inc. reported a third-quarter profit of $430 million, more than three times last year’s figure. Talisman shares gained $2.05, or 3.87%, to $55.05.

Canadian Natural Resources Ltd. reported a third-quarter profit of $151 million, down over 50% from last year. Nevertheless, shares jumped $5, or 10.13%, to $54.35.

The information technology sector lifted 2.4%.

Nortel Networks announced a third-quarter loss of US$105 million from US$259 million, still short of analysts’ expectations. Nortel gained 15¢, or 3.99%, to $3.91.

BCE reported a third-quarter profit of $441 million from $82 million a year earlier.

ACE Aviation Holdings Inc., the parent of Air Canada, reported a third-quarter profit of $270 million compared to a loss of $81 million last year. ACE gained 80¢, or 2.50%, to $32.80 on the day.

The junior S&P/TSX Venture composite index finished up 18.46 points, or 0.93%, at 2,003.97.

In New York, lower oil prices and strong corporate results from Time Warner Inc. spurred the market forward.

The Dow Jones industrial average rose 65.96, or 0.63%, to 10,472.73. The S&P500 index moved ahead 12.00, or 1%, to 1,214.76, while the Nasdaq gained 30.26, or 1.43%, to 2,144.31.