Source: The Canadian Press

The Toronto stock market looked set for a positive open Wednesday as gold prices continued to move further into record high territory, reflecting investor uncertainty about growing European debt problems.

New York futures also pointed to a higher open as investors’ attention returned to the health of the U.S. economy after focusing for more than a week on whether Greek debt problems would spread across Europe, upending a global economic recovery and possibly destroying the euro.

The Dow Jones futures gained 52 points to 10,761, the Nasdaq futures were ahead 11.25 points to 1,946.5 while the S&P 500 futures added 6.6 points to 1,158.8.

The June bullion contract on the New York Mercantile Exchange ran up $18.80 to US$1,239.10 an ounce. Gold closed at a record high on Tuesday as investors wonder if the European Union’s US$952 billion rescue plan will be enough to contain the Greek debt crisis.

Uncertainty over the long-term health of the euro has also helped boost gold to a new record. Investors worry the euro, which is used by 16 countries, could still lose value as debt-burdened countries cut spending to reduce high debt. Investors have turned to gold as an alternative to currencies.

The May copper contract on the Nymex edged up two cents to US$3.22 a pound.

But the June crude contract in New York was unchanged at US$76.37 a barrel amid a report from the International Energy Agency that it has slightly lowered its forecasts for the rise in global oil demand for 2010 by a daily 220,000 barrels, to 86.4 million barrels a day. The Paris-based agency said the change is based on fresh forecasts of rising economic growth _ resulting in more oil demand _ tempered by expectations of higher oil prices, which would dampen appetite for crude and its products.

The Canadian dollar moved ahead 0.54 of a cent to 98.41 cents US.

Meanwhile, the Wall Street Journal reported that Morgan Stanley is being investigated by federal prosecutors over whether the firm misled investors about mortgage-derivatives deals it helped design and sometimes bet against. The paper says investigators are examining, among other things, whether Morgan Stanley made proper representations about its roles.

Overseas, London’s FTSE 100 index of leading British shares was ahead 0.32% as Britain’s financial markets gave a subdued welcome to the country’s first coalition government since the Second World War.

Neil Mackinnon, global macro strategist at VTB Capital, said the financial markets will await details of how the new Conservative/Liberal Democrat government will tackle the budget deficit, expected to be over 160 billion pounds this year.

“The market risk has to be one of disappointment especially if the Lib Dems in the coalition resist spending cuts or push for the fiscal adjustment to be geared towards tax increases rather than spending cuts,” said Mackinnon.

Frankfurt’s DAX rose 1.85% as data showed that Germany’s economy, Europe’s largest, grew by a better-than-expected 0.2% in the first quarter of 2010 as a global recovery boosted demand for its high-value exports. And the Paris CAC 40 gained 0.98%.

In Asia, Japan’s benchmark Nikkei 225 stock average shed 0.2% while Hong Kong’s Hang Seng index gained 0.3%.

In other corporate news, Talisman Energy Inc. (TSX:TLM) said it’s contemplating $4 billion of capital spending next year, as it boosts oil and gas production by five to 10%. The Calgary-based multinational company said 2010 will be a critical transitional year for Talisman since, for the first time in its history, increased output from its shale gas holdings offset declines in its conventional natural gas production.

Quebecor Inc. (TSX:QBR.B) says higher revenues in its telecommunications segment during the first quarter offset declines in most other parts of its business, particularly news media. Revenue was $948.1 million, up $45 million overall from the same time last year.

Quebecor says it had $38.3 million or 60 cents per basic share of net income in the first quarter, before adjustments. That’s down from $57.7 million or 90 cents per share from the same time last year.

Bioniche Life Sciences Inc. (TSX:BNC), a research-based biopharmaceutical company, reports a fiscal third quarter profit of $4.4 million or six cents a share. That compares with a loss of nearly $3.1 million or four cents a share for the same period a year earlier.