U.S. markets closed for Independence Day

Yesterday while Canadian markets were closed, the Americans had a positive session, although trading was shortened, closing at 13:00 ET. Traders were boosted by a favourable National Association of Purhasing Managers report, indicating that manufacturing sector growth slowed in June to its lowest level in more than 18 months.

U.S. markets also held up in the face of a Mexican election result that had threatened to be disruptive. But calm prevailed in Mexico, soothing Wall Street, too.

The big news yesterday came when a German newspaper reported that Deutsche Telekom is considering a US$117 billion offer to acquire Sprint. U.S. senators are said to be mobilizing against such a deal. The other big news is that Saudi Arabia is said to be ready to boost oil output.

In the U.S. bank stocks led the way on rate optimism after the favourable NAPM report. Oracle Corp. fell after its president and COO resigned. EGL Inc. agreed to spend US$498.3 million in stock for rival Circle International Group Inc.

The Dow Jones industrial average finished up 112 points on the day at 10,561. The NASDQA composite added 26 points to 3,992, and the S&P 500 finished up 15 points to 1,469. Elsewhere in the Americas, Brazil was up 2% yesterday, while Mexico gained more than 6%.

In Europe this morning though much of the U.S. optimism has evaporated. Stocks are down across the board. London’s FTSE has dropped 31 points to 6,439. In France the CAC 40 is down 17 points to 6,491. Germany’s DAX is off a point or so to 6,957.

Although there are no major M&A announcements, Dresdner Bank AG and Commerzbank AG continue to talk about a merger.

In Asia stocks were mixed overnight after the Tankan report in Japan showed Japanese companies have turned positive on their economy for the first time in almost three years. The Yen slipped however as the report put a possible rate hike in doubt. The Nikkei closed down 144 points to 17,470. The Hang Seng though added 111 points to 16,235.

In other business news Acanthus Real Estate Corp. has agreed to a bid by Acktion Corp., after Acktion raised its offer from $8.25 per share to $9. Acanthus shareholders will still have the choice of either cash, preferred shares or a combination of both.