North American markets are likely to climb at the open Thursday, as investors focus on a major U.S. banking acquisition and await the Federal Reserve’s decision on interest rates later today.

Market watchers expect Fed policy makers will approve a quarter-point increase in the federal-funds rate to 3.25%.

In this morning’s economic news, Statistics Canada said the Canadian economy bounced back in April after declining in March.

Gross domestic product rose 0.4% in April after declining 0.1% in March, boosted by rebounds in oil extraction and education and higher retail sales.

Separately, the government agency said monthly prices for manufactured goods at the factory gate were unchanged in May, following five consecutive months of increases.

StatsCan said raw materials prices were down in May from April as crude oil prices declined for a second straight month.

South of the border, the U.S. Commerce Department said personal incomes rose 0.2% in May, after rising a revised 0.6% in April,. Economists had forecast a 0.4% gain in personal income in May compared with a robust 0.7% gain in April.

Commerce said May personal consumption was flat, after climbing an unrevised 0.6% the month before. Economists had called for unchanged consumption.

Separately, the U.S. Labor Department said jobless claims for the week ended June 25 declined by 6,000 to a seasonally adjusted 310,000. Economists had expected jobless claims to rise by 11,000 to a level of 325,000 in the week.

Later today, the National Association of Purchasing Management-Chicago is due to report the June manufacturing index. Economists look for a minimal increase to a reading of 54.2 from 54.1 in May.

In U.S. banking news, Bank of America Corp. said it will acquire MBNA Corp., one of the world’s largest credit-card companies, in a US$35 billion, cash-stock deal. The deal is expected to close in the fourth quarter of 2005.

North American stock markets ended slightly lower Wednesday, as investors chose to stay on sidelines ahead of Thursday’s Fed decision.

The S&P/TSX composite index fell 11.70 points, or 0.12%, to close at 10,029.33

Calgary-based PetroKazakhstan Inc. plunged $4.90, or 12.39%, to $33.95 after Kazakhstan’s energy minister said the country might exercise its priority right to buy the oil and gas company that operates in the former Soviet republic. On Monday, the stock spiked up more than 17% after the company announced it was looking for possible buyers or partners.

The junior S&P/TSX Venture composite index finished up 5.88, or 0.34%, to close 1,715.25

On Wall Street, the blue chip Dow Jones industrial average closed down 31.15, or 0.30%, to 10,374.48. The tech heavy Nasdaq composite index fell 1.00, or 0.05%, to 2,068.89, while the broad based S&P 500 shed 1.72, or 0.14%, to 1,199.85.