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North American markets appear set for a higher open Wednesday as investors anticipate a small improvement in existing home sales in the United States.

Economists surveyed by Thomson Reuters predict sales of existing homes rose to an annual rate of 4.66 million in April from 4.57 million in March.

If investors get that uptick, it would bolster the growing sentiment in the market that the U.S. economy is approaching recovery.

Investors got a significant boost on Tuesday with the release of consumer confidence figures that surpassed expectations.

The U.S. Conference Board said consumer confidence in May soared to 54.9 from a revised 40.8 in April. Economists surveyed by Thomson Reuters were expecting 42.3.

May's consumer confidence index is now at levels not seen since September.

The news sent stock markets sharply higher on Tuesday, allowing them to overcome initial concerns about North Korea's nuclear testing activities.

Toronto's S&P/TSX composite index moved 216.4 points higher to 10,285.9.

Bank of Montreal shares were ahead $2.15 to $43.71 after it said higher amounts to cover credit losses helped cut profits by 44 per cent to $358 million during the second quarter despite higher net earnings in its personal banking and capital markets divisions payday cash loan.

New York's Dow Jones Industrial Index jumped 196.17 points to 8,473.49 on Tuesday, leaving it 29.4 per cent above the 12-year low it reached in March. The index, however, is still 40.2 per cent below the record it hit in October 2007.

Ahead of Wednesday's market open, Dow Jones industrial average futures rose 29, or 0.3 per cent, to 8,490. Standard & Poor's 500 index futures rose 2.40, or 0.3 per cent, to 911.10. Nasdaq 100 index futures rose 1.75, or 0.1 per cent, to 1,412.50.

The Canadian dollar opened at 89.91 cents US, up 0.45 of a cent from Tuesday's close.

Light, sweet crude rose 58 cents to US$63.03 per barrel on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average rebounded 1.4 per cent while Hong Kong's Hang Seng index soared 5.3 per cent. In midday trading, Britain's FTSE 100 rose 0.2 per cent, Germany's DAX index rose 0.6 per cent, and France's CAC-40 rose 0.7 per cent.

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