Stocks are expected to open higher this morning, as the bargain hunters continue to flow in the market.

Low, low interest rates and talk of a massive U.S. stimulus package in the form of tax cuts and higher government spending is boosting optimism. Also, Dell Computer Corp. has affirmed guidance for its third quarter.

On the economic front the news isn’t so great. U.S. initial jobless claims rose another 71,000 last week to a nine-year high, as one of the economy’s key wounds continues to bleed.

In Canada, building permits declined 4.4% in August to $3.3 billion, halting a series of four straight monthly increases. The value of non-residential permits fell 11.9% to $1.4 billion, as commercial permits hit their second lowest monthly value in 2001. However, both single- and multi-family home construction intentions rose, lifting the value of housing permits 2.5% to $1.8 billion.

Canada’s Help-wanted Index was reported down 3.3% in September to 148. The index has been on a general downward trend since November 2000. Seven of 10 provinces recorded monthly decreases in September.

In Europe, stocks are bouncing on hopes of economic recovery in the U.S., and news that the Bank of England has cut its rates by 25 basis points to 4.5%. The FTSE is up 128 points to 5,010. The CAC 40 has gained 102 points to 4,126. The DAX is up just 41 points to 4,478.

Stocks were much stronger overnight in Asia, too. The Nikkei gained 281 points overnight to 10,206. The Hang Seng rallied hard, packing on another 389 points to 10,286.

In other news, Cognos Inc. has adopted a stock repurchase program that will see it buyback 5% of its shares.