Stocks are looking to open higher this morning on hope that the U.S. economy may recover faster than expected. U.S. retail sales rose 7.1% in October, mostly driven by auto sales.

Ex-autos sales were still up 1%. The unexpected jump has traders feeling good about stocks.

Progress in the war against the Taliban has traders cheering, too. The U.S. dollar is up to a three-month high on the news.

Crude oil prices are sliding on news that OPEC production cuts may fail to hold, and may leave prices down.

In Europe, stocks are up on hopes of an economic recovery. Names such as Royal Philips Electronics NV, Vivendi Universal SA and Cable & Wireless plc are leading the way.

The FTSE is up 32 points to 5,309. The CAC 40 has gained 47 points to 4,613. The DAX is up 74 ticks to 5,021.

Overnight in Asia, stocks were stronger, too. The Nikkei rose 56 points to 10,087. The Hang Seng added 287 points to 10,950.

In M&A news, Newmont Mining Corp. is acquiring Franco-Nevada Mining Corp. and Australia’s Normandy Mining Ltd. for an estimated US$4.41 billion in stock and cash to create the world’s largest gold producer.

In other news, Biovail Corp. announced today that it has entered into an underwriting agreement for an offering of 12,500,000 common shares at US$47 per share for gross proceeds of US$587.5 million. The joint book-running managers for the offering are Morgan Stanley and UBS Warburg, and the co-lead managers are Credit Suisse First Boston and Merrill Lynch & Co. The Canadian managers are Scotia Capital, BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc.

Also, IMAX Corporation reported pro forma net losses from continuing operations of 16¢ per share for the third quarter on a fully diluted basis.