By James Langton
(May 15 – 09:00 ET) – There’s no major economic data out this morning, and with the U.S. Federal Reserve Board meeting tomorrow, not much would matter anyway. Traders are still calling for a 50-basis-point increase tomorrow, followed by a similar move in Canada on Wednesday. In the meantime, many traders are probably sitting on the sidelines.
In Europe stocks are down modestly on U.S. interest rate fears, with high priced techs leading the way. The expectation of higher U.S. rates is also hitting the euro. On equity markets, London’s FTSE is heading down, off 18 points to 6,266. France’s CAC 40 is down just three points to 6,446 and Germany’s DAX has slid 16 points to 7,253.
In merger news, the Wall Street Journal is reporting that Terra Networks SA is in talks to buy Lycos Inc. for US$10 billion in stock. Preussag AG has scooped Thomson Travel Group PLC from C&N Touristic AG with a US$2.7-billion bid. Italian bank UniCredito Italiano SpA is buying Boston-based mutual-fund company Pioneer Group Inc. for US$1.2 billion in cash.
In Asia, stocks also slid modestly ahead of the U.S. rate decision. The Nikkei closed down 44 points to 17,313. The Hang Seng dropped 230 points, closing at 14,881.
In business news, Sleeman Breweries Ltd. says first-quarter net income increased by 45% to 7¢ per share, up from 5¢ in the same period last year. Zi Corp. recorded an operating loss in the first quarter of 6¢ per share, a 33% increase over the same period in 1999. SUMmedia.com Inc. reported a net loss of 55¢ per share.
In a tiny bit of economic news, sales of new motor vehicles rose 6.5% in March, following declines of 4.6% in February and 7.8% in January.