By James Langton
(March 22 – 09:00 ET) – Traders are expecting the Bank of Canada to raise interest rates in lockstep with the U.S. Federal Reserve Board this morning – up 25 basis points. With the rate moves out of the way, traders can get back to focusing on stock fundamentals.
Statistics Canada reports the leading indicator grew by 1.0% in February, after gaining 0.6%, revised upwards, in January. The upturn in February was led by housing and the improved labour market.
In Europe, stocks are mixed with retailers leading the buyside. London’s FTSE is the only market on the downside, off 35 points to 6,583. France’s CAC 40 is up slightly, just six points, to 6,327. The DAX is the strongest, up 19 points to 7,827.
In merger news, PSINet Inc., an Internet service provider is buying consultancy Metamor Worldwide Inc. for about US$1.9 billion in stock. Germany’s Bertelsmann AG is buying Swedish rivals Cell Network AB and Mandator AB for US$2.3 billion in stock to create a division that will be Europe’s biggest Internet consultant.
In other M&A talk, Mitsubishi Motors Corp.’s board has decided to engage in talks with foreign carmakers. Reportedly the firm may sell a third of itself to DaimlerChrysler AG. Hutchison Whampoa Ltd., Vodafone Airtouch PLC’s biggest shareholder is selling a third of its 5% stake for US$5 billion.
In Asia stocks followed Wall Street higher. The Nikkei added 131 points to 19,733. The Japanese rally was subdued by the approaching fiscal year end. In Hong Kong traders were more upbeat, bidding the Hang Seng up 347 points to 17,547.
In business news, Lions Gate Entertainment has hired Jon Feltheimer as its vice chairman and chief executive. Founder Frank Giustra will stay on as chair. Online grocer Peachtree Network Inc. has completed its initial public offering of 2.4 million shares at a price of $1.00 per share. It will commence trading on the Canadian Venture Exchange under the symbol “PCH” today.