Stocks will likely trade in a narrow range ahead of an anticipated rate cut in the U.S. this morning.

Opinion remains split over whether the Fed will drop rates another 25 basis points, or if it will slice off 50 bps.

Futures are down a little this morning, although techs remain up after Cisco Systems Inc. beat analyst forecasts last night, sparing hope for the networking sector to rebound.

Questions over whether Microsoft’s anti-trust settlement will be accepted by the states suing the fir is also weighing on stocks.

In Canada, about the only economic news of the week is out today. The value of building permits issued by municipalities declined for a second consecutive month in September, with builders taking out $3.2 billion worth of permits, down 1.2% from August. Despite the decline, this was 4.4% above the monthly average recorded in 2000.

The value of non-residential permits fell 3.0% to $1.4 billion in September, after dropping 12.2% in August. Marked advances in industrial and institutional permits failed to offset a 17.6% loss in the commercial sector, their lowest point in almost four years. However, the value of housing permits rose a marginal 0.2% to $1.8 billion.

In Europe, stocks are weaker today after German unemployment saw its biggest increase in almost three years in October, and SAS announced plans to cut 2,500 jobs.

The FTSE is down just four points to 5,205. The CAC 40 is off 35 points to 4,450. The DAX has dropped 17 points to 4,738.

Overnight in Asia, stocks were cheered by the Cisco news and rate cut hopes. The yen also rose against the euro and dollar as Japanese investors sold European bonds and invested domestically, according to analysts.

The Nikkei gained 186 points to 10,634. The Hang Seng dropped 75 points, though, to 10,356.

In M&A news, Fortum Oyj, the Nordic region’s second-biggest power company, will buy the 50% it doesn’t already own of Sweden’s Birka Energi AB for US$3.1 billion.

In earnings news, Mosaic Group Inc. reported earnings of 16¢ per share, blaming a 2¢ to 3¢ shortfall on the September 11 events.