At the open: A bid for Potash
David Berman
RTGAM



Global stock markets were set to rise on Tuesday, with the second-quarter earnings season wrapping up on a high note and another big-dollar takeover offer suggesting that mergers and acquisitions activity is strong.



U.S. stock index futures were higher with about an hour before markets open, suggesting that stocks will rise at the start of trading. Futures for the Dow Jones industrial average were up 51 points or 0.5 per cent. The index has been on a five-day losing streak, though fell just 1 point on Monday. Futures for the S&P 500 were up 7 points or 0.7 per cent.



In Europe, the U.K.'s FTSE 100 was up 0.8 per cent and Germany's DAX index was up 1.1 per cent in afternoon trading. In Japan, the Nikkei 225 fell 0.4 per cent in overnight trading.



Canadian markets will be at the centre of international attention when they open, due to a massive takeover offer for Potash Corp. of Saskatchewan. BHP Billiton Ltd. has offered $38.6-billion (U.S.) for the fertilizer producer, which is one of the largest companies (by weighting) within the S&P/TSX composite index and has been the source of takeover speculation. Potash Corp. has already rejected the offer and has responded with a plan to prevent any investor from owning more than a 20-per-cent stake in the company.



Meanwhile, the second-quarter earnings season has come to an unofficial close with results from Wal-Mart Stores. The discount retailer reported that earnings rose 3.6 per cent, due to stronger international sales. At the same time, Home Depot reported that its earnings rose 6.8 per cent, with higher revenue.