By James Langton
(February 24 – 09:00 ET) – The Canadian Consumer Product Index was reported this morning. It’s down 0.1% on the headline and 0.3% at the core. That’s far lower than analysts expected, thanks to a muted increase in energy prices and a large drop in auto prices. This is the fourth month in a row that the core rate has slipped, indicating that inflation is under control.
In the U.S., durable goods orders were reported down 1.3% in January, lower than the 3% drop that was anticipated. Jobless claims slipped 7,000 last week too. This data is viewed as rather benign to markets.
In Europe, stocks are up again today with telecoms and internet optimism leading the way. France’s CAC 40 is leading the way, up almost 2%, 115 points to 6,146. London’s FTSE has added 79 points to 6,223. The German DAX is up 75 points to 7,774.
Strong gains are evident at ABN Amro Holding NV, Reed Elsevier PLC, Deutsche Telekom AG, and British Airways PLC. All have recently announced internet strategies that are boosting expectations.
Central bankers are also fuelling Europe, indicating that rate rises may be coming, but further down the road. Traders had been speculating that rate rises would come as early as next week in Euroland. This is boosting stocks, but pushing the Euro below dollar parity.
In Asia stocks closed up on the backs of its telecoms and high tech stocks. The Nikkei added 52 points on the day to 19,571. The Hang Seng however positively roared ahead on its telecoms, closing up 682 points to 17,059.
In other business news, MDS is bidding $16 per share for biotech rival Phoenix International Life Sciences, according to Reuters. Phoenix has agreed to a deal for cash or stock.
Doman Industries is reporting a fourth quarter loss of 14¢, up from last year’s 55¢ loss in the quarter. Mullen Transport says it has earnings of 39¢ per share, up from 26¢ last year.