By Gavin Adamson

(October 4 -17:30 ET) – North
American markets closed on their
way up today. There was strong
speculation among traders that the
US Federal Reserve’s 0pen Market
committee will meet tomorrow and
give the U.S. economy another green
light.

Most analysts are predicting the
Fed will leave interest rates
alone, and that was enough for
investors to trade up prices for
bonds and equities.

The TSE closed up 110.96 to
7042.30, with the gold sector
leading the way. Of note: Trading
in Air Canada stocks was halted,
but the company refused to
speculate on rumours they were
accepting a counter-offer against
U.S. conglomerate Onex.

The VSE edged up by 1.40 to
421.71. The ASE took on another
22.26, jumping to 2826.00. The
Montreal Exchange increased by
57.72 to 3736.00.

The Dow posted its biggest gain
in more than a month, closing up
128.23 points, to 10,401.23.
Nasdaq jumped by 59.14, to
2,795.99, lead by stocks like
Apple Computer and Adobe
Systems Inc.

The breadth in the U.S. was
wide. Banks and utilities fared
well, with companies in each
sector making gains of four and
five per cent. Notables in the
bank sector were Chase
Manhattan, which took on
US$3 1/4 to $77 5/16, and
Northern Trust Co.
gained US$3 1/8 to $87 3/16.

Analysts are predicting further
gains tomorrow when, or if, the
Fed confirms their hope that the
status quo on interest rates will
be maintained.