Stocks are likely to advance at the open Tuesday, as a report on U.S durable-goods orders came in stronger than expected and the price of gold hit an 18-year high.

Canada’s Liberal government went down to defeat Monday on a non-confidence vote in Parliament last night, setting the stage for an election expected January 23.

Currency traders took the news in stride as the Canadian dollar opened at US85.58¢, down just 0.04 of a cent.

In today’s economic news, U.S. durable-goods orders increased by 3.4% last month to a seasonally adjusted US$214.39 billion, the Commerce Department said. Durables fell 2% in September, revised up from a previously reported 2.4% decline.

Excluding transportation, orders for other goods increased by only 0.3% in October, after slipping 0.2% in September.

Economists had forecast durable goods orders would advance 1.5%.

Report on U.S. consumer confidence for November, and new home sales figures will be released later this morning.

Here at home, Statistics Canada said monthly prices for manufactured goods at the factory gate were down slightly in October, as gasoline and fuel oil prices declined.

The government agency said raw materials prices were down again in October due to lower prices for crude oil.

Separately, StatsCan said Canada’s current account surplus with the rest of the world, on a seasonally adjusted basis, increased $4.4 billion in the third quarter of 2005 to $9.3 billion. A spike in energy prices led to record export values for energy products and contributed to the third largest surplus ever.

Crude-oil prices fell 21> to $57.15 a barrel in early trading Tuesday.

Gold prices broke through the US$500 an ounce threshold in Asian trading Tuesday for the first time since late 1987.

In this morning’s business news, MTS Allstream announced it is cutting 750 to 800 jobs in a cost-cutting move intended to results in annual savings of $50 million to $60 million.

The weakness in North American markets on Monday weighed on Asian and European market sentiment. The Nikkei 225 ended 0.4% lower at 14,927.70. London’s FTSE 100 was 0.1% lower recently.

Toronto stocks ended lower Monday, as a declining energy sector acted as a weight on the broader market.

The S&P/TSX composite index finished down 63.36 points, or 0.58%, to 10,939.81.

In corporate news, Dofasco accepted an all-cash offer from German steelmaker ThyssenKrupp worth about $4.8 billion, surpassing a bid from Arcelor by nearly 10%. Dofasco shares moved up $4.86, or 8.22%, to $63.98.

Vincor International Inc. rejected an improved offer of $35 a share from Constellation Brands Inc. Vincor gained 55¢, or 1.61%, to $34.65.

The junior S&P/TSX venture exchange finished down 14.56, or 0.71, or 2,050.11.

In New York, a report indicating sales of existing homes had declined in October plus news that pharmaceutical company Merck was cutting jobs and closing plants put downward pressure on the markets.

The Dow Jones industrial average slid 46.35 points, or 0.42%, at 10,885.27. The S&P 500 was down 10.54 points, or 0.83%, at 1,257.71. The Nasdaq composite index fell 22.76 points, or 1.01%, at 2,240.25.