Stocks are pointing to a down open this morning, as firms such as Providian Financial Corp., Microsoft Corp. and PMC-Sierra Inc. gave investors weak earnings forecasts. Weakness in Europe is adding to the gloom.

On the economic front the U.S. Consumer Price Index for September came in up 0.4%, up 0.2% on the core rate. Most economists are far more worried about growth than inflation right now.

Meanwhile, Canada’s merchandise exports fell to their lowest level in 17 months in August, as exports declined in all major commodity groups except automotive products.

Exports fell 3.4% to just over $34.1 billion, their lowest level since April 2000. Imports declined 0.9% to $29.7 billion, so the trade surplus fell to just over $4.4 billion. This is about half the record surplus of more than $8.4 billion in January.

Also, wholesale sales rose 0.8% in August, as wholesalers continued to sell off inventories. Sales gains were widespread-just 3 of the 11 wholesale sectors reported declines. Wholesalers sold $33.2 billion worth of goods and services in August.

European stocks are down after German business confidence unexpectedly dropped to an eight-year low in September, suffering its biggest drop in more than 25 years.

The euro is sliding as a result, and recession fears are resurgent. The FTSE is down 83 points to 5,033. The CAC 40 has dropped 76 points to 4,262. The DAX is also down 76 points to 4,498.

Overnight in Asia, stocks were mixed heading into the weekend. The Nikkei added 64 points to 10,539. The Hang Seng dropped 55 points to 9,826.

In M&A news, MFC Bancorp Ltd. is buying the Hovis group of companies, an international trading and industrial company with its head office in Vienna. MFC will spend US$7.3 million for 96% of the capital of Hovis. The principals of Hovis have the right to acquire up to 49% capital of Hovis over a five-year period.

CryptoLogic Inc. is reporting that its net income for the quarter rose by 69% to $4.4 million, compared to $2.6 million in the 2000 quarter.