With U.S. markets closed for Memorial Day today, Canadian markets will have to find their own sources of trading inspiration.

Volume will likely be thin, and the action unconvincing.

Early trading in Europe indicates that markets may open a bit higher on recovery hopes. German business confidence climbed in May, sending stocks higher too. This is the sixth gain in seven months, driven by higher export demand. In earnings news, reinsurance giant, Munich Re, reported record earnings in the first quarter.

The FTSE is down five points to 5,164. The CAC 40 has gained 39 points to 4,376, and, the German DAX is up 52 points to 4951.

Overnight in Asia, markets also seemed a bit rudderless. The Nikkei closed the day virtually unchanged at 11,976. The Hang Seng lost 62 points to 11,565.

In M&A news, Placer Dome of Vancouver is bidding $1.7 billion to take over Australia’s AurionGold Ltd. in a move the bidder said will make it the fifth-largest gold producer in the world.

Placer Dome says merger would make it the fifth-largest gold producer in the world. The firm is offering $4.51 Australian for each share of AurionGold in the unsolicited bid. Placer said its bid is worth 30% more than than AurionGold’s closing share price on May 24 on the Australian Stock Exchange.

Norway’s biggest bank, DnB Holding ASA, is said to be in talks to buy its largest insurer, Storebrand ASA for about US$2 billion.

In earnings news, Maritime Life Assurance Co. reported net income of $27.2 million for the first quarter, up 5.6% over the comparative period in 2001. Although, after adjusting 2001 results to remove goodwill amortization recorded in that period, net income is 2.5% lower than the same period last year.

Compton Petroleum saw its net earnings plunge for the quarter, dropping by 84% to $3.5 million from the $21.3 million realized in the same quarter of 2001.

In financing news, Shoppers Drug Mart Corp. announced that it intends to file a prospectus for a secondary offering by certain shareholders, to be sold through a syndicate of underwriters co-led by CIBC World Markets Inc. and Merrill Lynch Canada Inc.