Stocks are hanging onto gains this morning, as traders anticipate rate cuts later this week in the U.S. and Europe. The TSE 300 composite index is up 33 points to 7057. Volume is light at 63.6 million shares, with buyers trumping sellers by about 7:3. Winners have a slight edge on losers, about 11:9.

Techs are the big gainers today. TheyÕre up more than 4%, on hopes that Cisco Systems’ results, expected later today, will boost that group’s prospects. There have also been gains in paper stocks, financials, miners and conglomerates. Oils and golds are notably weaker, with slight losses in assorted other sectors.

Nortel Networks is leading the tech group higher, up about 4.7%, on Cisco hopes, and news of a $1.1 billion deal with Sprint. There’s also strength in Celestica, Bell Canada International, JDS Uniphase, ATI, Exfo Electro, Cryptologic and Zarlink Semiconductor. Exfo has completed its previously announced acquisition of Avantas Networks Corp.

The paper group is higher today, led by gains in Domtar, which is up more than 4%. Gains come on the news that Canfor intends to submit a claim to arbitration against the U.S. government for damages under the North American free-trade agreement in the ongoing softwood lumber dispute. It sees at least US$250 million in damages.

Also, Tembec Industries Inc. reported that it has purchased Davidson Industries Inc. for a total consideration of approximately $28.2 million. Davidson’s current sales are $75 million per year and owns three operating facilities and a distribution centre in Ireland.

Other gainers include Bombardier, Alcan, and Sears Canada. TD Bank is leading the banks higher

The downside is centered in the energy sector, today, as uncertainty regarding the future continues to mount. Stocks such as Pan Canadian Energy, Canadian Natural Resources, Trican Well Service, Suncor, Petro-Canada, AEC, Penn-West and Rio Alto are all down.

In business news, Brookfield Properties has reported that its net income in the third quarter was $53 million, a 36% increase over the $39 million reported in 2000.

U.S. markets are also maintaining their early gains at midday. The Dow Jones industrial average is up 91 points to 9415. The Nasdaq composite index added 38 points to 1784. The S&P is up 12 points to 1099.

The CDNX is the only down market today, off six points to 2992. Volume is average at 13 million shares, with weakness in techs and oils. Re-Con Building Products is the top trader, flat at 15¢ on more than 1.1 million shares.