By James Langton

(February 21 – 09:00 ET) – Stocks are facing another rough opening today. U.S. stock futures were down on profit worries earlier this morning, with techs bearing the brunt of selling.

The situation hasn’t been helped by this morning’s report on the U.S. Consumer Price Index. U.S. CPI came in up 0.6% on the headline and up 0.3% on the core in January. That is about double what economists were predicting.

Economists began raising estimates last week after being surprised by hefty producer inflation numbers. But the CPI still blew away expectations. The fear that the U.S. Federal Reserve Board may not be able to lower rates further is the big implication, but some analysts hope it’s just a blip in a generally low-inflation environment.

This morning it was also reported that Canada recorded an international merchandise trade surplus of $54.5 billion in 2000, as exports to the U.S. rose at more than twice the pace of imports. Canadian companies exported a total of $417.7 billion worth of goods to the world in 2000, up 15.8% from 1999.

At the same time, Canadian imports rose 11.1% to $363.2 billion. About 86% of Canada’s exports flowed to the U.S. in 2000, while 74% of imports came from the U.S. Exports to the U.S. rose 16.2% in 2000, while imports from south of the border were up just 7.3%.

The $54.5 billion trade surplus was far higher than the previous record of $42.4 billion set in 1996. In 2000, the trade surplus with the United States alone was $92.1 billion, compared with $60.1 billion in 1999. The deficit with countries other than the U.S. was $37.6 billion.

StatsCan also reported that private and public investment, including housing, is expected to increase by 1.7% in 2001, compared with 5% in 2000, bringing total capital investment to $183.1 billion.

European stocks are sliding this morning, led by the techs and particularly names such as STMicroelectronics NV and Alcatel SA. Profit worries are gripping the sector after Deutsche Telekom AG took a US$1.8 billion charge for writedowns, and cut its profit estimates. The FTSE is down just two points to 5,977, but the CAC 40 has dropped 94 points to 5,455. The DAX is off 120 points to 6,332.

Overnight in Asia stocks took it on the chin too. The Nikkei closed down 148 points to 13,100. The Hang Seng surrendered 176 points to 15,351.

In other news, Alberta Energy Company Ltd. reported net earnings before acquisition amortization of $1.1 billion for 2000, up 294% from 1999. Net earnings were $951 million, or $6.19 a share.

Call-Net Enterprises Inc. reported for the year 2000, a net loss of $451.8 million compared with a net loss in 1999 of $399.3 million.

Danoil Energy Ltd. announced today that it has signed an agreement with Western Facilities Fund and Nevis Ltd. to combine their respective assets and operations. Upon completion of a plan of arrangement, Danoil will, in effect, become an income trust. The trust will be named Acclaim Energy Trust and the combined operating company will be named Acclaim Energy Inc.