By James Langton
(September 20 – 10:00 EST) – Trading in Asia and Europe has been bullish this morning. S&P futures have been up a few points all morning.
The optimisim is being driven by news out of Japan, mergers and merger rumours, an absence of economic data to ruffle feathers, and some follow through from Friday’s gains.
The big news is that the Bank of Japan policy makers are expected to vote tomorrow to expand the country’s money supply and finally put a lid on the rising Yen. Repeated BoJ interventions have failed to suppress Yen strength.
That news pushed Japan’s Nikkei up 233 points overnight. Hong Kong’s traders took some profits and its HAng Seng closed off by 12.5 points.
In Europe markets are enjoying the news of a weaker Yen, but also several mergers are on the slate for Merger Monday today too. London’s FTSE 100 is up 42 points so far. Germany’s DAX has added 55 points and the CAC 40 in Paris is up about 45 points.
Toronto stocks are expected to rise today too. Although trading is expected to be quiet since many market participants are observing Yom Kippur.
Canadian Internet book retailer Chapters Online is making its debut on the Toronto Stock Exchange today. It will be closely watched. Expect comparisons with similar Internet company IPOs in the U.S.
Bankers are leading the way in merger news today – Dexia Belgium SA says it will buy a French banking affiliate and will join up with Societe Generale SA, which just extricated itself from three-way merger discussions. Meanwhile, Nordic bankers, MeritaNordbanken Oyj, are said to be buying Norway’s Christiania Bank ASA for US$3.1 billion. MeritaNordbanken is itself a merger creation, bringing together Finland’s Merita and Nordbanken of Sweden.
In other merger news, famed engine-maker Rolls-Royce PLC is bidding US$935 million for Vickers PLC. Rolls, which makes air and marine engines, hopes to double its marine business with a Vickers purchase.
Phillips Petroleum Co., the 7th-largest energy firm in the U.S., is reportedly in merger talks with Chevron Corp. A US$16.2 billion price tag is being put on the rumoured deal.