By James Langton

(October 20 – 09:00 EST) – After receiving relief from interest rate jitters yesterday much of the current market focus shifts to earnings, which are generally expected to be rather good. Markets boomed in Asia overnight, although Europe is mixed. S&P futures are up slightly.

Although hardly as critical as the major inflation data, there is some trade data out this morning. Statistics Canada is reporting that August’s trade balance hit $3.6 billion, its highest level since 1996, as both exports and imports continued to grow. Meanwhile wholesale trade jumped by 1.4% in August, with autos and food accounting for much of the increase. In the U.S. the trade gap narrowed to US$24 billion, a little better than expected, but not enough to move stock markets much.

In Europe market moves have been small, but mixed. London’s FTSE 100 is up 10 points. The French CAC 40 is up more than 20 points, while the DAX is down 6 points. The earnings are really the story of the day across the pond. Germany is down on worse than expected profit results at software giant SAP AG.

In Asia the overnight trade was their markets’ first chance to breathe easy along with Wall Street, with inflation concerns assuaged. The Nikkei closed up 280 points, while the Hang Seng rallied even harder, closing up 364 points.

With the focus swinging to earnings some major earnings announcements in the U.S. should support or slam different sectors in North American trading. Microsoft Corp. beat the street last night, providing buying support in all the overseas markets. Good numbers from Chase Manhattan, Bell Atlantic Corp. and DaimlerChrysler AG could give he bulls a little fuel in financials, telecoms and transports.

In Canadian earnings news, Eagle Precision Technologies Inc. has reported its results for the quarter ended August 31 – posting a net loss of $1.81 per share compared with a 48¢ profit for the same period last year. A slew of other companies are due to report today – including, CTV Inc., the beleagured Call-Net Enterprises Inc., Canadian Pacific Ltd., Imasco Ltd., and fund manager Strategic Value Corp.