Markets begin their return to normalcy today, with Canadian markets re-opening and U.S. bond market and commodity trading resuming.

U.S. Treasuries are gaining in early trading and foreign equity markets continue to hold up.

European stocks are up today, led by rebounds in insurers after Allianz AG and Munich Re forecast smaller claims than some feared. Also, the European Central Bank left its benchmark lending rate at 4.25%, amid expectations that there may be a coordinated global easing of interest rates. ECB president Wim Duisenberg indicated that a rate reduction now would be a panic response to the U.S. disaster.

In London, the FTSE is up 14 points to 4,896. In Paris, the CAC 40 has gained five points to 4,120. The German DAX has gained 25 points to 4,360.

T he U.S. dollar is hanging on to yesterday’s gains and Asian markets held up after facing a colossal selloff in immediate reaction to the terrorist attacks. In Japan, the Nikkei gained three points to 9,613. In Hong Kong, the Hang Seng added 76 points to 9,569.

In business news, Transat A.T. Inc. reported net income decreased to $5.9 million, or 18¢ per share, in its latest quarter compared with $9.8 million, or 31¢ per share, for the third quarter of 2000.

CAE announced that it has signed a contract with the U.K. Ministry of Defence worth $370 million.

On the U.S. economic front, initial jobless claims were reported higher last week. Although the significance of this report has been eclipsed in light of the current situation.