Market action is likely to be very light today in view of the U.S. Thanksgiving holiday. Nevertheless, Toronto stocks are looking a bit higher on the open, led by Europe and some constructive economic numbers.

It was reported that the Industrial Product Price Index rose 0.4% in October from September, the fourth consecutive month of rising prices. The year-over-year change was 2.4%, the strongest since May 2001. The recovery of industrial product prices since early 2002 underscores the strength demonstrated by the Canadian manufacturing sector to date.

Prices of raw materials were down slightly from September (-0.1%) but up 11.1% from October 2001. Higher prices for mineral fuels and vegetable products as well as for wood products and non-ferrous metals were mainly responsible for this annual rise in the Raw Materials Price Index.

Also, corporate profits continued to expand in the third quarter, but the rate of growth slowed considerably. Profits rose 2.6% from the second quarter, compared with increases of 9.2% and 13% in the first two quarters of 2002.

In Europe, stocks are generally higher today, although the lack of U.S. leadership is weighing there, too. Stocks are higher on signs of improved growth in European economies. French manufacturers’ confidence rose in November, the first increase in six months. The report is boosting names such as Cap Gemini SA, Royal Philips Electronics NV and Alcatel SA. On the downside, Munich Re reported a US$851 million loss in the third quarter, due to equity writedowns.

The FTSE is up 38 points to 4,182. The CAC 40 has gained seven points to 3,321. And, the DAX is up four points to 3,350.

Overnight in Asia, the volatile markets there powered higher. the Nikkei gained 301 points to close at 9,177. The Hang Seng has risen 203 points to 10,148.

In business news, Compton Petroleum announced today that it has entered into an agreement for a $17.5 million private placement of flow-through shares. The funds will be utilized to facilitate the expansion of Compton’s exploration operations. The shares will be issued through a syndicate of underwriters, led by Griffiths, McBurney & Partners.