It should be a positive morning. Traders are optimistic about economic growth. After Merrill Lynch came out with a bullish report. Big tech names such as Microsoft Corp., Oracle Corp. and IBM are leading the way this morning.

In Canada, manufacturing shipments surged 3.1%, in January, to $41.7 billion. The increase in manufacturing activity was widespread across industries. Manufacturers also continued to cut their inventories. That number was down another 0.5% in January, the eighth consecutive decline.

In Europe, stocks are rallying on economic recovery hopes. The FTSE is up 18 points to 5310. The CAC 40 has gained 59 points to 4647. The DAX is up strongest, climbing 54 points to 5455. Overnight in Asia, stocks opened the week slightly mixed. The Nikkei dropped 150 points to 11498. The Hang Seng gained 20 ticks to 11231.

In M&A chatter, Corus Group plc, Europe’s number two steelmaker, says it will sell its aluminum units to pay off debt. Also, water giant, RWE AG, plans to offer up to US$7.8 billion for Innogy Holdings plc.

In other news, Mosaic Group Inc.says the syndicate of investment dealers in its bought deal has exercised the option to purchase an additional 1.8 million shares. The syndicate consists of Yorkton Securities Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., HSBC Securities (Canada) Inc. and TD Securities Inc.