Futures markets are trading higher Wednesday on reports from Iraq that the American invasion forces has prevailed over the Baghdad division of Iraq’s elite Republican Guard.

The futures and overseas markets are reacting optimistically to the news.

The question remains whether a victory in Iraq will actually settle the “middle-east” question or put an end to terrrorist attacks. Some U.S. analysts are worried about a potential backlash against visible American companies such as McDonalds.

This war news may have less impact here in Canada, where investors are waiting for the market open to see what will happen to Air Canada shares. The airline’s stock didn’t trade yesterday while the company sought creditor protection in order to reorganize its affairs.
It shares closed Monday at $2.10, dropping 40¢ during the day.

European indexes are up at midday. London’s FTSE 100 has risen 1.71%. Frankfurt’s DAX jumped 4.19% during morning trading. Paris’s CAC 40 has climbed 3.13%.

Overnight, Asian markets finisihed higher on war optimism, too. Tokyo’s Nikkei Stock Average climbed 83.13 points, or 1.04%, to 8,069.85.

Hong Kong shares snapped an eight-session losing streak. Investors seem to be betting that the SARS outbreak is subsiding. And its impact on business will not be as bad as first thought. The Hang Seng Index rose 109.30 points, or 1.3% to 8,709.16.