Canadian markets finished up in dull trading today as many investors seemed to be on the sidelines waiting for Tuesday’s interest rate announcement.

The S&P/TSX composite index was up 58.10 points, or 0.68%, to close at 8580.36, while the TSX Venture Exchange composite index gained 7.99 to 1775.4. Canadian markets were on their own Monday as their U.S. counterparts were closed for Martin Luther King Jr. holiday and there were no major economic releases.

Technology stocks lead the way in Toronto, with information technology sector gaining rising 3.8%; energy stocks jumped 0.7%.

But things are expected to pick up Tuesday when the Bank of Canada meets to set interest rates and a host of U.S. companies release their fourth-quarter results. Many analysts are predicting the central bank will trim rates to give the economy a boost and cool off the currency. The central bank last cut its key policy interest rate by a quarter-point, to 2.75% in September, following a similar cut in July.

The Canadian dollar closed down US0.10¢ at US76.81¢.

In corporate news, Toronto-Dominion Bank shares slid $1.75 to $44.30 in trading Monday after the bank said it has abandoned plans to merge its U.S. discount brokerage unit with E*Trade Corp. TD Bank and New York-based E*Trade issued statements last night saying they had mutually agreed to “terminate” discussions, less than a week after they confirmed they were in talks about a possible merger. A deal would have been a blockbuster cross-border creation of a company worth as much as US$10-billion .

Shares of Hollinger Inc. nearly doubled in price after Conrad Black’s weekend announcement that two British tycoons have offered to buy the Toronto-based holding company and Black has agreed to sell his stake. Hollinger shares were up $3.70 to $7.60.

Meanwhile, the Investment Dealers Association is reporting that margin debt ticked up a bit in November. The latest data from the IDA puts client margin debt at a shade under $7.7 billion, up from $7.25 billion in the prior month. This also represents the highest level for margin debt since September 2002. Outstanding debt levels typically track the markets. So, borrowing peaked by in September 2000, in lock step with the markets, at $11.9 billion.

Canada’s international securities transactions in November recorded the second consecutive month in which foreign portfolio investment in Canada has swamped Canadian portfolio investment abroad. About $5.6 billion in Canadian securities were purchased by foreigners versus about $1.3 billion in foreign securities purchased by Canadians.