North American stocks appear set to open higher Tuesday ahead of the Conservative government’s first federal budget and as auto makers’ reports on April sales, with General Motors expected to lead an industry decline.

With a new federal budget in the wings, the Canadian dollar dollar broke though the US90¢ barrier early Tuesday, its highest level in more than 28 years.

The loonie opened at US90.13¢, up 0.3 of a cent.

Crude oil was trading at US$74.04 a barrel, up 34¢, early Tuesday.

In earnings news, Northgate Minerals reported a first-quarter profit of US$21.7 million on Monday, reversing a loss of US$10.4 million in same period a year ago.

Alcan more than doubled its profits in the first quarter on rising revenues, a one-time gain from the Enron bankruptcy in the U.S., high metals prices and improved efficiency. The aluminum maker said today it earned US$453 million or $1.21 a share for the quarter ended March 31, up from net earnings of US$218 million or 58¢ a share for the same 2005 period.

Insurer St. Paul Travelers lifted its 2006 earnings outlook and said it would buy back US$2 billion in shares.

Overseas, European equities markets were boosted by strength from oil majors, including BP and from a host of well-received results, including a 36% profit rise from Swiss bank Credit Suisse.

Japan’s benchmark Nikkei 225 index rose 228.06 points, or 1.35%, to finish at 17,153.77 points.

Japanese financial markets will be closed from Wednesday through Friday for the Golden Week holidays. The markets will reopen May 8.

In Hong Kong, the blue-chip Hang Seng Index rose 206.74 points, or 1.24% , to 16,868.04.

Toronto stocks rose modestly Monday, as big gains in resource stocks were offset somewhat by downward pressure from financials.

The S&P/TSX composite index moved ahead 30.39, or 0.25%, to 12,234.56.


The S&P/TSX Venture composite index rose 26.92, or 0.87%, to 3,129.99.

In New York, comments from U.S. Federal Reserve chairman Ben Bernanke indicated the Fed might not be at the end of its cycle of interest rate hikes.

The Dow Jones Industrial Average fell 23.85 points to 11,343.29, the Nasdaq Composite index fell 17.78 points to 2,304.79 while the S&P 500 Index dropped 5.42 points to 1,305.19.