Markets are facing a mixed open this morning. Techs are looking up, while other sectors appear to be more cautious.

Techs are looking up on the strength of semiconductor stocks which rose after chipmaker Xilinx Inc. issued a positive earnings forecast, saying order cancellations have “slowed considerably”.

The broader economy took a hit however after U.S. first quarter productivity was reported down at a revised 1.2% rate. This was the biggest drop in a quarter since 1993, as labour costs rose sharply.

Also the old economy is suffering in the form of Usinor SA, Europe’s largest steelmaker. The firm saw its first-quarter profit drop 53% thanks to weak prices for steel in a glutted market. It doesn’t expect to see prices recover until the fourth quarter.

OPEC says it expects to keep production stable at its meeting today. A couple of countries, however, have indicated they may increase production to make up for the shortfall created by Iraq’s refusal to pump.

In Europe, stocks are mixed. Oils are up on the expectation that prices are going up. Consumer stocks are weak though. The FTSE has gained nine points to 5,865. The CAC 40 is up 38 points to 5,471. The DAX has dropped 11 points though to 6,167.

Stocks were mixed overnight in Asia, too. The Nikkei dropping 130 points to 13,182. The Hang Seng added 244 points to 13,452.

In earnings news, the Forzani Group Ltd. says its net income grew to $1.5 million in its latest quarter, compared to just $300,000 in the prior year. Basic and fully diluted earnings per share after tax increased to 6¢, versus 1¢ last year.

In M&A news, Denbury Resources Inc. announced that it has entered into a definitive agreement to acquire privately-held Matrix Oil & Gas Inc of Louisiana for approximately US$163 million in cash, stock, and assumed debt.