By James Langton
(March 29 – 09:00 ET) – Markets appear set for a positive open this morning. Statistics Canada is reporting that January ‘s average weekly earnings for all employees rose $1.60. Average weekly earnings increased by 2.0% over the year, slower than inflation of 2.3%, as measured Consumer Price Index. This indicates a lack of wage pressure on inflation.
Statscan is also reporting that in 1999 Canada reduced its external liabilities for the first time since the Second World War. National net worth grew 5.5% to $3.0 trillion, the fastest pace in 10 years.
In Europe stocks are mixed. Wage growth appears to be slowing there too. Traders are now expecting the European Central Bank to stand pat at its next meeting. The OPEC agreement has oil prices down below US$25 per barrel for Brent North Sea Crude. This is bolstering old economy stocks, but internet stocks are weak. London’s FTSE is off 37 points to 6,613. In France the CAC 40 is up 34 points to 6,578. Germany’s DAX has added seven points to 7,939.
On the merger front IMS Health Inc., an information technology firm for drugmakers, is buying an internet health firm, TriZetto Group Inc., for US$8.1 billion in stock. A couple of other deals have failed. Banco Espirito Santo SA and BPI SGPS SA have ditched their planned US$3.4 billion merger. Renault SA has abandoned talks with Samsung Motor Inc.
Stocks closed mixed in Asia too. Japan enjoyed a broad yearend rally. The Nikkei closed up 332 points to 20,707. Meanwhile Hong Kong’s stocks suffered due to drops in techs and financials. The Hang Seng closed down 205 points to 18,096.
In business news Bombardier is confirming some big orders, including an order for 500 jets from Delta, a $2 billion deal. Transat a.t. is reporting a loss of 2¢ per share before a goodwill charge, up from an 8¢ loss last year.