U.S. stocks appear headed for a rebound Tuesday morning, lifted by lower oil prices and a better-than-expected report on U.S. productivity. Meanwhile, Canadian investors were greeted by a widely expected interest rate hike from the Bank of Canada.

The central bank hiked the overnight rate by one-quarter of one percentage point to 3.25%.

In anticipation, the Canadian dollar opened at US86.66¢, up 0.25 of a cent. On Monday, the loonie had moved up almost a third of a U.S. cent to its best close in almost 14 years, rising 0.28 of a cent.

Crude-oil prices fell 23¢ to US$59.68 a barrel in early trading Tuesday despite continued cold weather across the U.S. East Coast that boosted demand for heating fuels.

In today’s economic news, the U.S. Labor Department said third-quarter U.S. productivity in the nonfarm business sector increased 4.7%, revised up from the earlier estimated 4.1% rise. Economists called for a revision upward in productivity to a 4.5% annual rate.

A report on October U.S. factory orders is due at 10:00 ET. Economists expect a 2% increase compared with a decline of 1.7% the prior month.

In banking news, Bank of Nova Scotia said it will invest $390 million in Peru as part of a plan to grow its Latin American business by merging two Peruvian banks into a bigger financial company. The Toronto-based bank said late Monday it will use the money, about US$330 million, to acquire 80% of Banco Wiese Sudameris from its Italian parent and then merge it with Scotiabank’s 35% owned subsidiary, Banco Sudamericano

Overseas, the Japanese Nikkei 225 ended 0.8% lower at 15,423.38 after recent gains.

European markets were higher recently.

On Monday, Toronto stocks ended flat , as losses in the technology sectors offset strong gains in the energy group, but the Canadian dollar hit a nearly 14-year-high.

The S&P/TSX composite index ticked ahead 3.54 points, or 0.03%, to 11,008.78.

The S&P/TSX Venture composite index finished down 0.09, staying essentially flat, to settle at 2,088.81.

In New York, rising oil prices and fears of continuing interest hikes put downward pressure on the markets.

The Dow Jones industrial average lost 42.50 points, or 0.39%, to 10,835.01, the S&P 500 index fell 2.99, or 0.24%, to 1,262.09, and the Nasdaq composite index dropped 15.73, or 0.69%, to 2,257.64.