Markets are starting the fourth quarter with solid gains. At midday, the S&P/TSX composite index is up 69 points to 7,490.

Volume is on the light side though, at 106.3 million shares. The volume is certainly bullish, with the buyers trumping the sellers by a 20:7 margin. Market breadth is narrower, with winners ahead of losers by a 17:16 edge.

Today’s advances are coming in sectors that lost ground yesterday. Techs are back up 2%, and there are solid gains in diversifieds, financials, energy, industrials and telecoms. Golds are off 1.2%.

Nortel Networks is leading the rally, It’s up 2.2% on solid volume. However, the big winner is ATI, which has surged 6.4% in active trading, on news that it has settled an outstanding lawsuit with rival Cirrus Logic Inc.

Celestica, Wi-Lan, Zarlink Semi and CAE are rallying, too.

Telus is enjoying a solid 3.6% gain, and BCE s up 0.5%. Biotechs are holding up, with advances in Cryocath, VSM MedTech, and Labopharm.

Other winners include Alcan, Cinram, EnCana, Talisman and Suncor Energy.

Sun Life Financial is leading the financial sector higher, with a 3% gain, but Manulife Financial is sliding once again, down another 0.5%. The banks are all stronger, with CIBC up 1.6%.

Golds are giving back their recent flight-to-safety gains, with Apollo Gold down 5.6%, and selling in Cambior, Eldorado Gold, Wheaton River, Kinross, Place Dome and Glamis Gold.

Other losers include Ivanhoe Mines, Enerflex, Canico Resources and good old Air Canada.

In business news, Angiotech Pharmaceuticals says that it has closed its US$219 million public offering. The proceeds are expected to finance Angiotech’s clinical studies, research and product development, working capital, and general corporate purposes, including acquisitions.

Bombardier Transportation and its consortium partner Alstom will supply a further 68 Cobra trams to the transport authority of Zurich. The new order for 68 trams is valued at approximately $239 million, and Bombardier’s share of the contract amounts to approximately $194 million. The vehicles are scheduled for delivery in mid-2005.

Wall Street is also rallying in light volume today, as traders breathe a sigh of relief that today’s economic data wasn’t worse. Many are now looking forward to Friday’s jobs data for the next big market moving number.

The Dow Jones industrial average is up 112 points to 9,387. The Nasdaq composite index has added 22 points to 1,809. The S&P 500 is up 14 points to 1,010.

The S&P/TSX Venture index is the only down market, dropping six points to 1,387. Volume is on the light side at 30.9 million shares. Aavdex Corp. is leading the trade, up 1.5¢ to 4.5¢ on volume of 1.2 million shares, following news that it has arranged a private placement and its president has resigned.