The Canadian Press

The Toronto stock market appeared heading for a slightly higher open amid positive employment news and hopes of a solution to Greece’s financial crisis after the government unveiled further tough measures to reduce borrowing.

The Canadian dollar rose 0.25 of a cent to US96.7¢.

Meanwhile, Royal Bank of Canada (TSX:RY) reported that its profit in the latest quarter was nearly $1.5 billion, an increase of 35% from a year before.

RBC’s Canadian banking division accounting for about half of the bank’s profit. Royal’s overall provision for credit losses was reduced by 37%, falling to $493 million.

However, cash earnings per share were $1.03. Analysts had estimated $1.04 per share.

The results at RBC come on the heels of market pleasing earnings in the last week from CIBC (TSX:CM), National Bank (TSX:NA) and Bank of Montreal (TSX:BMO).

U.S. futures pointed to a generally positive open with the Dow Jones industrial futures up a point to 10,400, the Nasdaq futures declined 3.25 points to 1,849 while the S&P 500 futures added 0.3 of a point to 1,117.7.

There was good news on the jobs front two days before the release of the U.S. non-farms payroll report for February. Outplacement firm Challenger, Gray and Christmas said that major U.S. companies announced in February that they would cut 42,090 jobs — the lowest monthly total since July 2006.

And the ADP employment report, from a major payroll processing company, said that the U.S. private sector shed 20,000 positions during February, which was in line with expectations.

Investor attention was focused on Greece after the government announced a new austerity plan worth 4.8 billion euros (US$6.5 billion) in savings to deal with the country’s financial crisis. The measures include trimming civil servants’ annual salaries with a 30% cut in their holiday bonuses, freezing pensions and imposing further cuts on stipends and bonuses.

Greece also increased the sales tax from 19% to 21%.

The new austerity package comes after European Union officials bluntly told Athens to make deeper spending cuts. Ratings agencies have also warned of more damaging downgrades if Greece is unable to rein in its debt.

In other earnings news, newspaper, book and Internet publisher Torstar Corp. (TSX:TS.B) had a $57.4-million profit in the fourth quarter, a turnaround from the $213.9-million loss it reported a year earlier when the publishing and media company recorded major writedowns.

Overseas, London’s FTSE 100 index and the Frankfurt DAX dipped 0.1% while the Paris CAC 40 was off 0.34%.

Earlier in Asia, Japan’s Nikkei 225 stock average edged up 0.3% but Hong Kong’s Hang Seng lost 0.1%.

Elsewhere, Australia’s market rose 0.7%, lifted by news the local economy grew at its fastest pace in nearly two years, signalling that the country has emerged from the worst of the global crisis.

Shanghai’s market was 0.8% higher.

The TSX could find support from the energy sector as the April crude contract on the New York Mercantile Exchange gained 37¢ to US$80.05 a barrel.

Bullion also headed higher as the the April contract on the Nymex advanced $2.80 to US$1,140.20 an ounce. May copper was unchanged at US$3.42.