Markets are pointing to a strong opening this morning, thanks to a convergence of positive news.

Intel Corp. has suggested that demand is set to recover in the second half of the year, and that has traders snapping up chip stocks.

On the economic front, the Bank of England surprised analysts with an interest rate cut earlier today. The European Central Bank left its rates unchanged.

In the U.S., initial jobless claims fell last week by 23,000 to 346,000. This drop was also unexpected and is improving sentiment for the U.S. economy.

In July, Canadian manufacturers report improved sentiment, too. Statistics Canada says manufacturers still expect some cuts to production in the coming three months, but they are somewhat less pessimistic than in the previous quarter.

Manufacturers are still concerned about the level of orders and finished-product inventory. Employment prospects in the manufacturing industry also remained uncertain.

In Europe, stocks are rallying thanks to the surprise rate cut and renewed hope for chip demand. In London, the FTSE is up 71 points to 5,617. In Paris, the CAC 40 has gained 69 points to 5,181. Germany’s DAX has added 69 points to 5,905.

Overnight in Asia, stocks were mixed. In Hong Kong, the Hang Seng closed down 12 points to 12,466. But the Japanese market enjoyed a huge rally, led by its chip stocks, gaining 440 points, or 3.7%, to 12,399.

A chip stock that getting an extra boost today is PMC-Sierra Inc., on the news that it will be added to the S&P 500 Index after the close of trading on today. It will be replacing Quaker Oats in the index, following its acquisition by PepsiCo Inc.