By Jeff Sanford

(June 15 – 16:30 ET) – Most major markets ended the day relatively flat as traders wait for news from the Fed on interest rates. As evidence emerges that the U.S. economy is finally cooling, investors seem to be sitting on the sidelines waiting to see whether or not the evidence is enough to convince Fed chairman Alan Greenspan to raise rates or keep them where they’re at.

The Fed’s Beige Book, released in advance of its meeting scheduled for June 27 and 28, found that retail sales and residential real estate activity have slowed, while 11 of the central bank’s 12 regional districts reported signs of a cooling economy.

Some seem to think the “soft landing” may be harder than it was assumed just a few weeks ago. Merrill Lynch is recommending an underweight position in U.S. equities and an overweight position in bonds.

Nevertheless, the TSE 300 managed a slight rally this afternoon to close up 138 points at 10,110.70, a gain of 1.4%. The last time the TSE crossed over into 10,000 territory was in March.

Trading volume was light at 127.8 million shares. Declining issues slightly edged out advancing issues, 550 to 520, while 288 issues remained unchanged.

Within the sub-indices, communications and media and industrial products both had big days. The communications and media index finished up 432.57 points for a 2.11% gain, while industrial products picked up 429.64 points for a gain of 3.49%.

Financial services continued to take a drubbing, with the sub-index dropping 112.48 points over the day.

In individual stocks, Ranger Oil, the subject of a takeover bid by Canadian Natural Resources Ltd., finished the day down on heavy volume of over 14 million shares. It finished the day at $8, down 4.19%.

Nortel was the big gainer on the TSE. It picked up another $5.20 to finish the day at $99.60. The good news? Mobility DCS has contracted the networking company to develop a next generation wireless network in the southeastern United States while Global Crossing Ltd. contracted the company to build a pan-European fibre optic network. Both deals were announced this morning.

Seagram had another busy day, ending up $3.10 for a close price of $91.50, that’s after a gain of over $10 yesterday. Negotiations continue with Vivendi SA over the sale of the company.

Franco Nevada, involved in a merger with South Africa’s Gold Fields Ltd., ended the day up over 4%, to close at a price of $17.50.

News that Placer Dome Inc. will keep its Las Cristinas gold mine project on hold sent the stock down over 4% to a close of $13.80.

The CDNX ended the day relatively flat, finishing with a slight decline. It closed down 12.14 points at 3459.34.

In New York, the Dow Jones industrial average also remained relatively flat, closing Thursday at 10,687.95, up 22.89. The S&P 500 was also up slightly. It closed at 1,478.54, a gain of 7.6 points. NASDAQ just about made up the 50 points it lost yesterday, closing up 45 points to finish the day at 3843.17, a gain of 1.21%.

The loonie finished the day down slightly, ending the day at US67.75¢.