After yesterday’s big reaction to last Tuesday’s terrorist attack, North American markets appear to be taking a wait-and-see approach today.

At midday, the TSE 300 is down 38 points to 6,870.

Volume is 84 million shares so far, with the start of Rosh Hashanah likely contributing to the lighter volume. News of a unilateral cease fire by Israel in the West Bank is also bolstering confidence.

Selling volume holds a very slight edge on buying, and losers also slightly outnumber winners.

Golds continue to weaken, as the flight to safety abates. Energy stocks, consumer and industrial stocks are weaker. Media plays, utilities and conglomerates are sliding, transports continue to head lower.

Financials are up slightly as the insurers rebound, overwhelming weakness in banks and fund managers. Real estate is up strongly, and there are modest gains in paper stocks and pipelines.

The big movers to the downside today include Bombardier, CAE, Barrick, BCE, CP and Celestica. There’s also weakness in QLT, MDS, Linamar, Geac and Nexen.

Quebecor is down on news that it has reached an agreement with a consortium, consisting of Cogeco and Bell Globemedia Inc., to sell its interest in television network TQS inc.

The selling price establishes the value of TQS at $72 million, and it will realize proceeds of $62 million on the sale. In addition, advances in the amount of $12 million made by Quebecor to TQS in the past will be repaid. Quebecor will therefore receive a total of $74 million under the transaction.

Manulife is leading the rebound in the insurance stocks. Fund companies are weak, led by AGF down 5%.

Nortel Networks is a bit stronger today, as U.S. techs hold up. It is joined by Sierra Wireless, BCE Emergis, Angiotech, and Kasten Chase. Brookfield is bouncing back as well.

In business news, BMO Capital Trust issued $400 million in trust capital securities this morning. The trust capital securities will qualify as Tier 1 capital of the bank for regulatory purposes.

St. Lawrence Cement Group has received the approval of the TSE for a normal course issuer bid to purchase 5% of its 25,818,715 outstanding subordinate voting shares.

In New York, after early indications of weakness, and deep weakness in Europe, U.S. markets are holding up. In fact, European markets followed the U.S., paring their losses in half in response to U.S. market leadership. Most European markets finished down better than 1%.

At midday, the Dow Jones industrial average is up 39 points at midday to 8,961. The Nasdaq composite index has gained six points to 1,585. The S&P 500 is up one point to 1.040.

The CDNX is modestly weaker today, down 12 points to 2,832. Volume is light at 12.8 million shares. Miners are the down group, with techs up and oils flat.Quadra Resources is the top trader, up 50% to 3¢ on less than 1 million shares.