By James Langton
(February 23 – 09:00 ET) A mixed opening to markets is expected this morning with plenty of news in the market. Statistics Canada has a slew of data out this morning. Retail trade for December had huge gains, up 2%. For the year, retail sales were up 5.8%.
Statscan is also reporting that private and public investment is expected to increase by 1.3% in 2000 to $176.6 billion. Housing investment will increase for the fifth straight year to $43.0 billion and plant and equipment investment is expected rise to $133.6 billion.
Also in December, foreign investors cut their holdings of Canadian securities, pushing foreign investment in Canadian securities down to its lowest level in 25 years. Canadian investors added to their foreign holdings, however, moving those holdings to a new annual record of $23 billion.
Overnight stocks are up around the world. In Europe, optimism over economic growth for the region has stocks heading higher. German business confidence was reported at a five-year high today. Chemicals and automakers are leading the charge higher. London’s FTSE has added 125 points to 6,139. Germany’s DAX is up 145 points to 7,753. France’s CAC 40 has added 59 points to 6,022.
In Asia, stocks also closed up, largely on the backs of telecoms. The Nikkei finished up 129 points to 19,520. The Hang Seng index finished 122 points higher at 16,377.
The big corporate news is the long-expected Newbridge Networks Corp. buyout. France’s Alcatel SA, Europe’s second-biggest phone equipment maker, is buying Newbridge for US$7.1 billion in stock. Both stocks fell on the news.
In other business news, Royal Bank of Canada is reporting earnings of $1.63 per share for the quarter ended January 31, up from $1.34 per share in the quarter last year.
Motorola is taking an equity stake in market sweetheart 724 Solutions.