Markets are up in light trading, ahead of the year’s last rate decision from the U.S. Federal Reserve Board, due at about 14:00 ET today.

At midday, the TSE 300 is up 29 points to 7589.

Volume is on the light side at 73 million shares, with buyers outpacing sellers seven to five. The split between winners and losers is almost dead even however, reflecting the market’s decision to stay in a holding pattern ahead of the Fed action.

Banks are up today in anticipation of the rate cut. Tech hardware is making gains on news of optimism at Nokia Oyj, the world’s biggest cell phone firm. Paper stocks, biotechs and phone utilities are up, too. The downside is coming in chemical stocks, auto parts, media plays and merchandisers.

Nortel Networks is leading the techs and the market higher as it rides the Nokia wave. It is up 4% in relatively moderate trading. There are gains in Celestica, Centrinity, Certicom, Royal Group Tech, 724 Solutions, Zarlink Semi, Microcell, Descartes Systems and CAE.

Bank of Nova Scotia is leading the financials higher, and the insurers are up a bit, too. Tembec is powering up the paper stocks. BCE is also making gains.

The downside is mostly coming in old economy names such as Rio Alto, Nova Chemicals, and Fairmont Hotels. But there is also weakness in some techs such as ATI, Bell Canada International, Pivotal, Leitch and CGI.

Also Synsorb Biotech is taking a pounding, down 58% after announcing that it is abandoning further development of one of its drugs, Synsorb-Cd.

In M&A news, Rothmans has been notified by Santa Fe Natural Tobacco Co. has decided to terminate its merger agreement with Rothmans and has accepted the competing offer from R.J. Reynolds Tobacco Holdings Inc. Under the terms of the merger agreement, Rothmans is entitled to receive a termination fee of approximately US$11 million.

Also, Corus Entertainment has signed an agreement with CTV Inc. to sell its 29.9% stake in the Comedy Network for $36 million. The sale is expected to close by the end of January 2002.

In New York, the scene is much the same. Traders are bidding stocks up cautiously ahead of this afternoon’s rate decision.

The Dow Jones industrial average is up 21 points to 9,942. The Nasdaq composite has gained 24 points to 2,016, back above 2,000. The S&P 500 has gained three ticks to 1,143.

The CDNX’s new S&P/CDNX composite index is flat today at 996. Volume is on the light side there too at 12.1 million shares. The top trader is Highpoint Telecommunications, flat at 1¢ on 380,000 shares.