By James Langton
(September 21 – 09:00 ET) – Canadian retail sales came in up 1.3% to $23.3 billion, advancing for a third consecutive month in July. This marks an acceleration from gains of 1.1% in June and 0.6% in May. Lower prices for autos in July partly offset the higher prices observed in most of the remaining retail sectors.
Statistics Canada says retail sales have gained strength over May, June and July. Despite a weaker performance at the beginning of 2000, retailers have generally seen strong sales since the fall of 1998, following a period of smaller gains in the spring and summer of that year.
In Europe stocks are sliding this morning led by techs and telecoms, profit fears remain they key. So far the FTSE is off 87 points to 6,193. The CAC 40 is down 126 points to 6,279. The DAX is off 103 to 6,662.
Stock futures are pointing south this morning too, with names such as Alcatel, Axa and Versatel leading the slide. In this climate there are no M&A announcements in the news. In fact, Gold Fields Ltd. announced that the Minister of Finance of South Africa, Trevor Manuel, has informed the company that he will not approve its merger with Franco-Nevada Mining Corp. Gold Fields says it is “reviewing this response and will be seeking opportunities for further dialogue with the Government on the matter”.
Stocks got a rough ride in Asia overnight, too. The Nikkei slid 147 points to 16,311. The Hang Seng plunged 501 points, 3.2%, to 15,164. Trading volume was very thin and jittery in the midst of a HK$10.28 billion placement by Cable & Wireless plc. Techs led the way south.
In other news, Cyberplex Inc. has announced a strategic partnership with Psion Inc.