Wave of bullish trading continues

The Canadian economy continues
to boast good results. Statistics
Canada reported GDP at factor
cost, up 0.5% for August. It’s
the 13th month of increases in a
row, implying 4.1% in year over
year growth. Transportation led
the way, followed by retailers,
while mining was slow, as was the
utilities business. U.S. demand
is being named as the biggest
reason for the gains.

There ‘s no major economic news
out of the U.S. today, although
traders will have an eye on the
Chicago Purchasing Managers
Report, out at 10:00 EST.

European markets are moving
well to the upside this morning,
primarily on the low-inflation
enthusiasm that’s infecting Wall
Street. In London, the FTSE 100
is up more than 85 points. The
CAC 40 is trading strongest of
the major European exchanges,
up about 92 Points. The German
DAX is trading up 43 points.

In Asia overnight, the gains
were aggressive in both Japan and
Hong Kong, up more than 3% on
both markets. The Nikkei traded
up 528 points, while the Hang
Seng closed up 498 points on the
day. The blow-over from Wall
Street is seen as the biggest
driving factor.

In other business news,
MacMillan Bloedel
shareholders have approved the
firm’s merger with Weyerhaeuser Co.

Winnipeg-based financial giant,
Investors Group Inc., is
announcing third quarter earnings
of 30.1¢ per share, up from 23.8¢
in the period last year.

Electronics giant Celestica
Inc. says it will launch a
public offering of subordinate
voting shares in a deal led by
Morgan Stanley Dean Witter and
RBC Dominion Securities Inc.;
with the proceeds going to capital
expenditures, including possible
future acquisitions.