Markets are likely to open flat this morning, following a two-day sell-off that hauled the Nasdaq composite index down to its lowest level thus far this year.

In New York, yesterday, the Nasdaq composite index closed at its lowest point this calendar year, down fell 2.08 points to 2,005.44.

Here at home, Statistics Canada says businesses, governments and institutions intend to allocate more than $223 billion in 2004 for total capital spending on plant, equipment and housing, a 3.1% increase from 2003. These are the first indications are that private sector investment will grow since 2001.

StatsCan is also reporting that Canadian corporations earned a record $168.3 billion in operating profits in 2003, surpassing the previous high of $165.1 billion earned in 2000. Led by the depository credit intermediaries — mainly chartered banks — and oil and gas producers, 16 of the 24 broad industries showed increases, propelling profits 15.1% over 2002 levels, following a 5.6% rise in 2002. Manufacturers endured a turbulent year, as their profits slipped 9.2%, reversing most of their 2002 gains.

In the U.S., economic reports are scarce this week. The U.S. National Association of Realtors is due to report on sales of existing homes sales at 10:00 ET. Economists expect existing-home sales to have declined by 3.2% in January to an annual rate of 6.26 million.

Meanwhile, investors are looking for guidance from to senior U.S. Federal Reserve officials. Yesterday, Richmond Fed Governor Alfred Broaddus warned about disinflationary pressures remaining in the U.S. economy and the need to keep interest rates low for an “extended period of time.” Fed chairman Alan Greenspan is scheduled to speak later today.

In business news, Investors Group Inc. is taking over IPC Financial Network Inc. in a deal valued at between $88 million and $106 million. The mutual-fund giant controlled by the Power Corp. conglomerate is paying $1.95 per share for the Toronto-based financial planning firm. The agreement, announced Wednesday, structured through a company to be known as IPC Holdco, will leave Investors Group with between 70% and 85% of IPC Holdco.

TransCanada Corp. is offeringUS $1.7 billion US for National Energy & Gas Transmission Inc., which has been operating under U.S. bankruptcy-court protection. GTN’s key asset is the Gas Transmission Northwest system, 2,174 kilometres of pipeline from the British Columbia-Idaho border to the Oregon-California boundary.

In earnings news, Canadian Natural Resources reported record 2003 profits of $1.4 billion, and also said it is raising its dividend and splitting its shares.

Midday in Europe, Paris’s CAC40 is 0.2% higher at 3,691.93. In Frankfurt, shares have fallen on profit-taking and some negative company news. The Xetra Dax Index is down 0.4% at 3,974.85, after dropping 1.9% on Tuesday. London’s FTSE100 is down 0.2% at 44,88.8, despite upbeat economic data.

In Asia, trading was mixed. Tokyo’s Nikkei Average edged up 14.60 points, or 0.1%, to 10,658.73. In Hong Kong, the Hang Seng Index ended down 156.94 points, or 1.1%, at 13,599.47.

Yesterday, Toronto stocks finished lower for the fifth straight session Tuesday. The S&P/TSX composite index slipped 4.63 points lower to close at 8,604.99. The Dow Jones industrial average closed down 43.25 points at 10,566.37. The S&P 500 closed down 1.90 points at 1,139.09.