Futures trading is positive Monday morning for no other reason than the hostilities in Iraq seem to be winding down.

The only economic statistic of significance today came from the U.S. Department of Commerce which is reported that U.S. business inventories climbed for a 10th straight month in February. U.S. business inventories rose 0.6% to US$1.16 trillion, following a revised 0.3% gain in January. However, business sales slipped 0.1% during the month, the biggest drop since November 2001.

The big economic news in Canada this week will come from the Bank of Canada. A rate hike of 25 basis points is expected Tuesday. Analysts are making this prediction based on recent hawkish statements by bank governor David Dodge, as well as the wind-down in Iraq.

European indexes have edged higher in early Monday trading. London’s FTSE index moved is up 0.88%. Frankfurt’s DAX has risen 0.55%. Paris’s CAC 40 has climbed 0.54%.

Asian stock markets had a more mixed record in Monday trading. Tokyo’s Nikkei slipped to a fresh 20-year low. It fell 64.39 points, or 0.82%, to 7,752.1 amid concern that Japanese companies were selling issues from their pension fund portfolios.

In Hong Kong, the key Hang Seng Index fell 112.1 points, or 1.3%, to 8,533.55, its lowest close since Oct. 9, 1998. Brokers said investors are concerned about the long-term economic impact of SARS.

In business news, Encana’s stock is likely to get quite a boost today. On the weekend, business newspaper, Barron’s, gave the company a glowing review, calling its balance sheet a “fortress of strength.”