Stocks are looking brighter this morning, as traders anticipate some improvement in the U.S. economic picture. The market appears to be betting that GDP numbers and consumer confidence measures, due this week, will show some strength. Big blue chips such as Home Depot Inc. and Intel Corp. are up on the improving sentiment.

The only economic news out so far is data showing that foreign investors reduced their holdings of Canadian securities by $1.6 billion in September, particularly in Canadian equities and money market paper.

Foreign investors reduced their holdings of Canadian stocks by $1.3 billion in September, as markets remained weak. Foreigners have reduced their holdings of Canadian equities by $3.8 billion so far in 2002. At the same time, demand for foreign bonds by Canadian investors rose sharply, but their buying of foreign stocks came to a halt.

In Europe, stocks are mixed so far today. Credit Lyonnais shares are up on news that it may be taken over by BNP Paribas SA. Its stocks are down. Also, Swiss Reinsurance Co. says it expects to exceed its earlier insurance writedown estimate of US$336 million this quarter. J.P. Morgan Chase & Co. cut its ratings on European stocks generally, citing a weak profit picture. The Euro is down on the news too. Stocks such as Unilever plc, Fortis and Carrefour SA are down.

The FTSE is down 24 points at midday to 4152. The CAC 40 has dropped three ticks to 3303. And, the DAX is up a point to 3322.

Overnight in Asia stocks gained. Japanese names headed higher despite news that Japan’s big four banks will lose US$2.5 billion this fiscal year to deal with bad loans. The Nikkei gained 172 points to 8944. The Hang Seng added 35 points to 10101.

In earnings news, Alliance Atlantis Communications Inc. reported second quarter EBITDA of $40.5 million compared to $35.2 million in the same quarter last year. Net losses for the period were $3.9 million, compared to net losses of $1.1 million in the same period last year.

And, Eldorado Gold Corp. announced that it has eliminated its residual bank debt and gold hedge book.