The big news for markets Wednesday will be the U.S. Federal Reserve’s release of the latest “Beige book”, its report on American economic conditions. Fed chief Alan Greenspan has been conservative in recent days, remarking on the impact of high energy prices.

Overall that the U.S. economy continues to suffer from lack of corporate spending especially when it comes to hiring.

Here at home, Statistics Canada is reporting the positive effect of energy prices. They fuelled a 10.6% surge in corporate profits in the first quarter, Statistics Canada reported this morning.

Operating profits of $42.9 billion were the highest since the fourth quarter of 2000. Profits have now risen for five consecutive quarters after slumping throughout 2001.

Of the 24 broad industry groups, StatsCan said 15 reported profit gains in the first quarter, but the growth was dominated by the energy sector and the chartered banks. Excluding the oil and gas extraction and refining industries and the depository-credit intermediaries (mainly chartered banks), corporate profits posted a much more modest 1.2% quarter-to-quarter improvement.

Trading on the Wall Street futures indexes is flat. Meanwhile, Asian markets were mixed at the end of their Wednesday trading. Tokyo’s Nikkei Stock Average rose 101.21 points, or 1.15%, to 8,951.03, following the climb on Wall Street yesterday. But Hong Kong, shares fell edged for the second straight session on minor profit-taking. The Hang Seng Index ended the day down 41.66 points, or 0.4%.

The only positive sign for North American equities traders is that the European bourses are up. In London at midday, the FTSE 100 is up 0.76%. Frankfurt’s DAX has gained 0.87%. Paris’s CAC 40 is up 0.99%.