At approximately 20:00 ET, tonight, the U.S. is expected to begin it’s invasion of Iraq. The prospect has driven overseas markets higher, while pre-market futures trading is up, too.

Tokyo’s 225-issue Nikkei Stock Average rose 96.58 points, or 1.21%, overnight. It closed at 8,051.04. In Hong Kong, the Hang Seng Index climbed 117.08 points, or 1.29%, to 9,158.59.

In Europe, at midday Wednesday, London’s FTSE 100 index is up 0.86%. Frankfurt’s DAX has jumped 2.29%. The Paris CAC 40 is up 2.17%.

Increased stock market activity follows the decision by the U.S. Federal Reserve on Tuesday, which left interest rates unchanged.

In an unusual move, the Fed declined to give any hint about what it might do next. It didn’t give its usual assessment of whether future risks to the economy were tilted toward inflation, economic weakness, or were balanced between the two. The Fed said it couldn’t characterize the current risks until the geopolitical situations stabilizes.

Among Street analysts, there are two camps on the impact of geopolitcis: one group finds certainty in the prospect of a quick war; the other is looking longer term to the costs of U.S. President George Bush’s promise to rebuild, once the war is over.

Meanwhile, crude oil prices in New York plunged US$3.25 to US$31.68, yesterday. That’s the biggest one-day drop in almost a year. It’s good news for consumers and businesses, but it is hurting energy companies, such as EnCana, whose shares fell 40¢ to $46.80.