Stocks look set to open higher Wednesday. Traders remain focused on possible cuts to interest rates in the United States next week, or at least a change in the Federal Reserve’s policy bias. As well, stronger than expected profit at Cisco Systems Inc. announced after the bell on Tuesday is giving stocks a boost generally, particularly tech stocks.

In economic news, it was reported that the overall value of Canadian building permits increased in June, thanks to a strong surge in proposed commercial and institutional projects. However, construction intentions in Canada’s housing sector fell for the second straight month. In total, municipalities issued just over $3.8 billion in building permits, up 4.6% from May.

Builders took out $1.6 billion in non-residential building permits in June, the highest level in the last 11 months and a 19.1% jump from May. Building permits in the residential sector slid 3.5% to $2.3 billion, the second consecutive monthly decline.

In Europe, stocks are mostly up so far today, gaining on the Cisco news, but also news of strong results at Standard Chartered plc and Adidas-Salomon AG. The UK markets are weak after the Bank of England cut its economic growth forecast. The FTSE is down six points to 4,124. The CAC 40 is up 61 points though to 3,345. The DAX has gained 22 points to 3,591.

Overnight in Asia, stocks followed through on yesterday’s rally in the U.S., and they got some good news with strong profits reported by Toyota Motor Corp. The Nikkei gained 333 points to 9,834. The Hang Seng added 277 points to 9,978.

In earnings news, IMAX reported second quarter net earnings of 9¢ per share versus losses of 37¢ per share in the second quarter of 2001

Newmont Mining Corp. announced net income of $64.8 million for the second quarter of 2002, a significant improvement from a net loss of $33.5 million for the 2001 quarter.

Canadian Natural Resources reported net earnings of $145 million in its latest quarter, compared with $286 million for the second quarter of 2001.

Sico Inc. had net earnings of $6.3 million for the second quarter of fiscal 2002, up 51% over 2001.