Market watchers are expecting stocks to open on a positive note. U.S. Federal Reserve Chairman Alan Greenspan is set to go before congress at 10:00 ET today for the first of his twice-a-year testimony on the state of the economy.

He is expected to pronounce on President Bush’s proposed tax plan. Some analysts are predicting that the Fed chief will testify that the economy is on the verge of picking up.

War worries lessened yesterday when Baghdad said it will allow flights by U-2 surveillance planes through its airspace. This was a key U.N. demand. On the other hand, NATO remains deadlocked over whether more diplomacy and more time is needed in dealing with Iraq’s alleged weapons violations. France, Germany and Belgium continue to oppose preparations for a U.S.-led war.

Meanwhile, early morning futures trading are pointing to modest gains on the equities markets.

In Tokyo, traders were celebrating the National Foundation Day holiday. In Hong Kong, the Hang Seng index shed 37.23 points to 9,194.91 after it’s fifth largest bank, the Bank of East Asia, announced weaker than expected 2002 results.

In London, the FTSE 100 index is up 1.7% rising 62 points to 3,641.1. Frankfurt’s DAX and the Paris CAC 40 each advanced 1.5%.

In earnings news, Fairfax Financial Holdings reported its biggest-ever annual profit after the close yesterday — $415.7 million.

George Weston Ltd. completed another positive year in 2002 achieving basic net earnings per common share of $5.05 compared to $4.42 last year. Fourth quarter basic net earnings per common share increased 16% to $1.70 from last year’s $1.46.

In economic news, Statistics Canada has released a detailed analysis of the factors that have shaped the nation’s workforce in the past 10 years, with emphasis on immigrants in the workforce. This report analyses the growing demand for skills in the workplace, the aging labour force and the increasing reliance on immigrants as a source of skills.

Another report entitled, Where Canadians work and how they get there, is also available. It analyses changing trends in commuting patterns between metropolitan areas, driving to work, the use of public transit and the use of alternative means of getting to work. It also profiles individuals who work at home and those who work outside the country.