By James Langton
(June 27 – 09:00 ET) – The June Federal Reserve Board Open Market Committee meeting starts today, with a rate decision not expected until mid-afternoon tomorrow. Traders continue to expect no hike coupled with a cautionary policy statement, although some reserve the possibility of a 25 basis point hike. There are no economic releases on either side of the border.
In Europe stocks are mostly down, with oils and utilities leading the way. Interest rate concerns in the Eurozone are also weighing on traders. London’s FTSE has dropped 19 points to 6,385. In France the CAC 40 is down 42 to 6,544. Germany’s DAX has dumped 30 points to 6,996.
In M&A news, the megamerger between WorldCom Inc. and Sprint Corp. is expected to be blocked by the U.S. Justice Department.
In other business news, the tech sector is expected to take a hit today with a couple of firms, Harmonic Inc. and Network Peripherals Inc., warning that their earnings will disappoint. EVA Airways Corp. of Taiwan has ordered up to 15 Boeing 777 aircraft, a US$3 billion order that should bolster that group.
In Asia stocks were up overnight on Wall Street’s heels. The Nikkei added 353 points to 17,279. The Hang Seng added 177 points to 16,155.
In earnings news, Alliance Atlantis Communications Inc. announced results for its fourth quarter and the 12 months ended March 31, 2000. Gross profit for the year increased by 37.1% to $179.2 million. Net earnings were $37 million, or $1.31 a share.