North American markets look set to rise at Tuesday’s open, but trading will likely be light ahead of the U.S. Federal Reserve’s latest decision on interest rates due this afternoon.

The Fed is expected to boost the target on the federal-funds rate by 25 basis points to 4.25%.

In this morning’s economic news, U.S. retail sales climbed during November as demand for cars rebounded and Americans shopped for the holidays.

Retail sales increased by a seasonally adjusted 0.3% a third month in a row, the Commerce Department said today. Sales were originally seen down 0.1% in October. Economists had forecast a 0.5% November advance.

Here at home, Statistics Canada reported that the he leading index rose by 0.3% in November, after a solid 0.5% gain in October.

The Canadian dollar opened at US86.69¢, down 0.12 of a cent.

Light, sweet crude-oil prices were up 11¢ to US$61.41 a barrel on the New York Mercantile Exchange amid forecasts for more cold weather in the U.S. Northeast and a decision by the Organization of Petroleum Exporting Countries to keep its oil-output ceiling unchanged.

In earnings news, Transat A.T. Inc. said its fourth-quarter earnings jumped to $18 million, from a year-earlier $11.3 million, on increased business in North America and a return to profitability in Europe.

Overseas, European markets were barely changed in midday trading. In the United Kingdom, the FTSE 100 rose 0.1%.

Overnight in Asia, markets in were flat, with Tokyo’s Nikkei 225 stock average rising 40.16 points to 15,778.86.

Toronto stocks ended lower Monday on profit-taking, despite a rising energy index, as the market readied itself for the Fed decision.

The S&P/TSX composite index finished down 32.75 points, or 0.29%, to 11,099.26.

Volume on the senior exchange was 325 million shares.

CI Financial Inc. withdrew its $285 million takeover bid for Clarington Corp., clearing the way for Industrial Alliance Insurance and Financial Services Inc. to buy the wealth-management firm.

Industrial Alliance shares rose 3¢, or 0.11%, to $28.20, CI Financial lost 40¢, or 1.57%, to $25.00 and Clarington dropped back 10¢, to 0.66%, to $14.95.

The S&P/TSX Venture composite index nudged ahead 0.67, or 0.03%, to 2,140.37.

In New York, a big merger in the energy sector was overshadowed by a unfavorable court ruling for Merck.

The Dow Jones industrial average lost 10.81, or 0.1%, to 10,767.77, the S&P 500 index rose 1.06, or 0.08%, to 1,260.43, while the Nasdaq composite index advanced 4.22, or 0.19%, to 2,260.95.