By James Langton
(March 27 – 09:00 ET) – Traders remain focused on the U.S. interest rate scene. Most are
expecting another 25 basis point hike at the next U.S. Federal Reserve Board meeting, with some possibility of 50 bps.
Absent much economic data, traders are also expecting some direction on oil prices from the OPEC ministers meeting later today. The market is expecting production increases of 1.5 million to 2 million barrels per day. However even this probably won’t be enough to hurt prices much.
The threat of interest rate hikes in Europe and high oil prices is hitting many stocks over there this morning. London’s FTSE is down 69 points to 6,670. Germany’s DAX has slipped 69 points too to 7,864. Only France is overcoming the sell-off, up 67 points to 6,431.3
The automakers continue to marry up this morning. DaimlerChrysler AG is buying a 34% stake in Mitsubishi Motors Corp. for US$2.1 billion. Volkswagen AG is buying 33% of Scania AB’s voting securitiess for US$1.62 billion.
There’s also a deal in the Japanese paper industry. Nippon Paper Industries Co. is buying Daishowa Paper Co. for US$1.1 billion in stock.
In Asia the market outlook was more upbeat than in the West. Blue chips powered the markets higher overnight. The Nikkei closed up 323 points to 20,281, up above the 20,000 mark once again. The Hang Seng jumped 508 points to 18,293.
In other business news Cancom is reporting a second quarter loss of 21¢, down from last year’s 14¢ profit in the quarter. TrizecHahn is said to be selling its portfolio of Canadian office buildings.