Stocks should rebound this morning, as the bargain hunters get back into battered stocks. Yesterday’s closing rally in the U.S. was followed up by a strong rally in Europe. And traders were keen on beaten-down blue chips such as Intel Corp., Alcoa Inc. and IBM, in the pre-market.

There was also some good corporate news, this morning, with word that FedEx Corp.’s fourth-quarter net income more than doubling in its last quarter. DuPont has also raised its earnings guidance.

On the economic front, a two-day U.S. Federal Reserve meeting starts today. The Fed’s rate decision is due tomorrow. There’s some talk among analysts of a further rate cut. Later today, U.S. consumer confidence numbers will be released, and traders are expecting a drop.

In Canada, international transactions in securities for April were reported. Canadian investors plowed $3.5 billion into foreign stocks and bonds. Foreign investors acquired a small amount of Canadian securities, primarily through continued investment in Canadian bonds.

The Composite Index for May was also released. The growth of the leading indicator was 0.7% in May, after gains of 1.3% in March and 1.2% in April, which were the largest in almost 20 years.

In Europe, the rebound is being led by bargain hunting in names such as Vivendi, Credit Suisse, Nokia and BMW. The only economic news in the region is a report that German business confidence unexpectedly fell in June. The FTSE is up 90 points to 4632. The CAC 40 has added 74 points to 3744. The DAX is up 89 points to 4215.

Overnight in Asia, stocks were mixed. The Nikkei gained a mere 25 points to 10497. The Hang Seng dropped 48 points to 10609.

In earnings news, Alliance Atlantis Communications Inc. reports that its full year net earnings came in at $47.3 million, up 35%. Fourth quarter earnings were $12.8 million, up 56%.