By James Langton
(May 19 – 09:00 ET) – Markets are mostly down overseas and U.S. equity futures are pointing to a sharp drop on opening. Rising interest rates and their presumed effect on the economy are seen as the reason why. London’s FTSE is down 146 points to 6086. France’s CAC 40 is off 199 points to 6253. Germany’s DAX has slipped 204 points to 6977.
Markets were mixed in Asia overnight. Japan slid as its government began making noise about raising rates there. The Nikkei closed down 173 points to 16858. The Hang Seng popped off recent lows to close up 156 points to 14478. The European Union and China have agreed on terms for China’s entry into the World Trade Organization.
Canada recorded a trade surplus for March of $3.9 billion, in line with economists’ expectations, according to Statistics Canada. Canadian companies exported $33.5 billion worth of goods in March, up 4.5% from February, led by autos. Imports rose 3.7% to $29.6 billion, halting two consecutive monthly declines. The key imports were electronic products, automotive parts, tools and equipment, and energy products.
There is talk that the Canadian bond market will officially close early at 13:00 ET today for the Victoria Day weekend.
In other business news Microforum Inc. is buying a small software developer, Icom Alliance Inc., for $1 million in cash and stock. Another $2.5 million in stock is available on an earnout basis.