All week markets have been focused on the direction of U.S. interest rates. This afternoon the decision will be announced. Most economists expect that the U.S. Federal Reserve will lower it 25 or 50 basis points. Stocks are unlikely to move much ahead of the decision.

There’s no other economic news out of the U.S. this morning. In Canada, average weekly earnings for all employees were reported virtually unchanged in April, at $661.05.. On a year-over-year basis, average weekly earnings were up 1.8%. In goods-producing industries, there were slight earnings decreases in mining, construction and manufacturing. Earnings in services-producing industries were reduced slightly by declines in real estate and leasing as well as education and health. These declines were somewhat offset by earnings gains in wholesale and professional services. Average weekly hours for hourly paid employees were down a slight 0.2 to 31.6 hours.

The number of employees on payrolls rose 13,000 in April. However, this increase includes the addition of temporary Census workers. With the temporary employment impacts excluded, payroll employment in April was little changed.

Earnings warnings continue to attract attention today, after semiconductor-maker Xilinx Inc. dropped its sales forecast. Europe’s third-largest chemical company, Bayer AG, also warned that its earnings will be weak.

In Europe, stocks are mixed at midday. Techs are weak, but financials are driving up on hopes of a rate cut in the U.S. The FTSE is up 41 points to 5597. The CAC 40 has dropped 24 points to 5066. The DAX is also down 24 ticks to 5824.

Stocks stayed mixed overnight in Asia too. The Nikkei shed 150 points to 12829. The Hang Seng gained 42 points to 13004.

In business news, Bombardier Transportation was awarded a contract by the Istanbul Transportation Co. for 55 low-floor trams. The contract is valued at $112 million, with delivery expected in autumn 2002.

ATI Technologies Inc. today reported sales of US$255.9 million for the fiscal third quarter ended May 31, a 10.% increase over the previous quarter. It also reported an adjusted net loss of US$4.2 million for the quarter, or 2¢ per common share, which was better than previously stated management expectations on strong cost cutting.