(May 30 – 09:00 ET) – With no meaningful data releases out today, corporate earnings and investor sentiment will drive the action. So far U.S. and U.K. investors are coming back to the market in an upbeat, buying mood.
U.S. stock futures are pointing to stronger openings on both NASDAQ and the Dow. Early European trading is all up strongly on telecom mega-merger news. London’s FTSE is up 114 points to 6330. France’s CAC 40 has gained 91 points to 6296. Germany’s DAX is up 126 points to 7143.
The big news is Europe is that France Telecom SA is set to buy cell phone firm, Orange PLC from Vodafone AirTouch PLC for about US$46.5 billion in cash, stock and assumed debt.
In other merger news Japan’s biggest cell phone company NTT DoCoMo Inc. is said to be seeking a 20% stake in U.S. rival VoiceStream Wireless Corp. for US$4.68 billion. Sara Lee Corp. has announced a large asset selloff to focus on food and beverages, underwear and household products.
In Asia markets were mixed ahead of the return of U.S. investors. Japan’s Nikkei dropped 16 points to close at 16228. The Hang Seng gained 16 points to 13991.
In other news the board at Plains Energy Services Ltd. is recommending against Precision Drilling Corp.’s $100 million bid for the firm. It received advice from Peters & Co. Ltd. on the deal.