Stocks are expected to open higher on news that the European Central Bank and the Bank of England both stepped up with 50 basis point cuts to interest rates this morning.

In economic news on this side of the pond, U.S. initial jobless claims fell unexpectedly by 46,000 to 450,000 last week — their lowest level in a couple of months.

Canadian housing starts increased 12.7% in October to 173,500 units compared, according to Canada Mortgage and Housing Corp. Urban singles rose 7.2%, the highest annual rate for single starts since March 2000. Urban multiple starts bounced back 20.6%.

European stocks are mixed on news of the interest rate cuts. France’s CAC 40 is the only market showing gains, up 67 points to 4,560. The DAX is down 53 points to 4,583. The FTSE is down just a point at 5,215.

In M&A news, Dynegy Inc. is said to be considering buying troubled Enron Corp. for US$8 billion in stock.

Asia markets rallied last night on a rebounding tech sector. The Hang Seng gained 269 points to10,539. The Nikkei added 147 points to 10,432.

In other news, DRAXIS Health Inc. reported net income for the quarter was positive at US$259,000.

SYNSORB Biotech recorded a net loss of $1,612,000, compared to a net loss of $2,495,000 for the third quarter 2000.