Stocks look set to rise on the open this morning, as bargain hunters troop into the market, and traders begin anticipating rate cuts. The U.S. Federal Reserve is expected to lower rates later this week, and there’s hope they may slide in Europe too.

There’s no major economic news out today, although Statistics Canada did announce that labour productivity slid marginally in the first three months of 2001 as the economy slowed down. The year-over-year annual growth rate of labour productivity in the first quarter was -0.2%. This marks the first year-over-year drop in quarterly productivity growth since the second
quarter of 1996.

In Europe, stocks are up based on the hope for rate cuts there this week. And oil companies such as Shell Co. and Total Fina Elf SA are rebounding. German inflation numbers came in weak, raising hopes that the inflation-wary European Central Bank may be moved to reduce rates to boost growth in the coming weeks. The Euro is up as a result. On the markets, the FTSE has gained 24 points to 5689. The CAC 40 is up 31 points to 5215. The DAX however is down 15 points to 5926.

Overnight in Asia, stocks were weak on the heels of Friday’s Wall Street slide. The Nikkei shed 148 points to 12896. Hong Kong’s market was closed for a holiday.

In M&A news, Washington Mutual Inc., the largest U.S. savings and loan, is buying Dime Bancorp for US$5.2 billion in stock and cash.

Anadarko Petroleum Corporation is buying Gulfstream Resources Canada for $2.65 per share, in a deal totaling $208 million.

Petrobank reports that Barrington’s shareholders have approved the firms’ proposed takeover deal. Final court approval was received on June 22, too.