Wall Street futures suggest a positive start for North American markets Wednesday, while European indexes are higher at midday.

In economic news, U.S. housing starts fell 0.7% to a seasonally-adjusted 1.967 million annual rate, the Commerce Department said this morning. This follows a revised decline of 1% in April to a 1.981 million rate. April starts were previously reported as falling 2.1% to a 1.969 million annual rate. Economists had forecast a decline of 1% to a 1.950 million annual rate.

Statistics Canada said today that the increase in the value of Canadian assets abroad drove the country’s net liability to foreign residents to its lowest level in more than 18 years during the first quarter of 2004.

Canada’s net foreign liabilities — the difference between its foreign assets and foreign liabilities — dropped $23.7 billion to $194.2 billion at the end of March.


In business news, rumours of a possible bid for Canadian mining giant Noranda Inc. are making the rounds today. Company spokesmen had no comment on a media report that Brazil’s CVRD would make a US$4.7 billion takeover offer for Toronto-based Noranda.

European markets are higher in midday trading as investors cheered upbeat remarks made by U.S. Federal Reserve Chairman Alan Greenspan and as European economic data came in line with expectations.

The annual inflation rate in the euro zone jumped to 2.5% in May from 2% in April, due mostly to rising costs of fuel and oil products across Europe, the European Union said today. The numbers were in line with economists’ forecasts and earlier estimates from Eurostat, the EU’s statistics agency. It was the second straight month that inflation has stayed above the European Central Bank’s target “close to, but below” 2%. As a result, the ECB is unlikely to cut interest rates this year.

London’s FTSE 100 index iss up 44.90 points, or 1%, to 4,503.50.

In France, the CAC 40 is ahead 0.8% to 3,712.59 points, while Germany’s Xetra DAX has gained or 0.6% to 4,010.73.

Asian markets closed higher as Tokyo snapped a three-session losing streak. Japan’s Nikkei gained 254.02 points, or 2.23%, to close at 11,641.72.

In Hong Kong, the blue-chip Hang Seng Index jumped 111.09 points, or 0.92%, to 12,161.78.

On Tuesday, comments by Federal Reserve Chairman Alan Greenspan and news that U.S. consumer prices rose 0.6% in May sent the Dow Jones Industrial Average up 45.7 points, or 0.44%, to 10,380.43.

Oracle’s fourth-quarter earnings of US19¢ a share were a penny ahead of Wall Street estimates, and the company’s year-ago results of US16¢. The Oracle results helped to lift the tech-heavy Nasdaq composite index up 25.61 points or 1.30% to 1,995.60. The broader S&P 500 index gained 6.72 points at 1,132.01.

In Toronto, the S&P TSX added 97.73 or 1.18%, rising to 8,390.24. The junior S&P/TSX Venture composite was the only loser among the North American markets. It dropped 4.63 or 0.3% to 1,522.77.