Expectations for rate cuts in the U.S. and Europe, this week, are boosting stocks this morning. In the U.K. industrial production experienced its largest decline in four years, in September. European inflation is down, too. Both factors are boosting the rate cut prediction. Analysts feel assured that rates cuts will come in the U.S. in light of recent economic data.

Tech stocks are getting a particular boost. A positive earnings report from Cisco Systems is expected early today.

Europeans markets are reflecting the general sense of optimism. The FTSE is up 49 points to 5179. The CAC 40 has gained 77 points to 4446. The DAX is up 131 points to 4715.

Last night in Asia, markets rallied too. The Nikkei added 64 points to 10448. The Hang Seng packed on 245 points to 10431.

In earnings news, Canadian Pacific Railway is updating its 2001 earnings guidance. CPR is now getting basic earnings per share before non-recurring items of 69¢ for the fourth quarter, this compares with 78¢ in the same period of 2000. Higher interest expense resulting from the change in the company’s capital structure combined with increased other non-operating charges will more than offset an improvement in the company’s operating earnings.