Federal Finance Minister Ralph Goodale will deliver his first budget this afternoon. This morning Goodale said that the government intends to sell Ottawa’s $3 billion stake in Petro-Canada in 2004-05.

The rising price of crude oil has made shares in companies such as Petro-Canada especially appealing to investors so the sale of Ottawa’s 19% holding could swell the federal treasury in time for an anticipated spring election.

Goodale said the precise timing of the sale is yet to be determined.

Other expected items in today’s budget include a billion-dollar bail-out of the beef industry to compensate them for the devastation caused by the mad cow crisis.

The budget will also provided details for plans first announced in February’s throne speech to give the country’s cities a full rebate on the GST they pay for goods and services.

In economic news, Canada’s composite leading index rose by 0.4% in February, comparable with the revised increases in December and January. Statistics Canada reported this morning that six of the 10 components advanced, one more than in January, as the money supply turned up.

According to StatsCan, the sources of strength and weakness have remained the same over the last three months. Manufacturing led the gains, after lagging behind most of last year. Household demand was mixed.

South of the border Wall Street futures indicate stocks are likely to open flat as investors continue to worry about geopolitical concerns after three days of lower closings.

In Europe, European stocks were slightly higher in midday trading, with telecommunications shares leading the advance.

London’s FTSE100 Share Index is up 0.21% to 4,342.80, while in Paris the CAC40 Index is 0.21% higher at 3,546.59. Frankfurt’s Xetra Dax Index has gained 0.25% to 3,738.69.

Asian stock markets closed generally mixed, with prices falling sharply in Taipei for a second straight session on concerns about political turmoil in Taiwan after a dispute over last week’s presidential election.

Tokyo stocks ended mixed. The Nikkei Stock Average of 225 issues slipped 37.42 points to 11,281.09 points.

In Hong Kong, the blue-chip Hang Seng Index edged up 37.45 points to 12,588.36.

North American market indices plunged Monday in the face of threats of revenge by the militant Palestine organization Hamas for the killing of its leader.

The S&P/TSX composite index closed down 105.33 points at 8,478.48, Toronto’s benchmark index is now 4.6% off its 2004 high.

On Wall Street, the blue-chip Dow Jones industrial average dropped more than 100 points for the second session in a row. The Dow fell 121.85 points, or 1.20%, to 10,064.75, just above the 10,000 milestone.

The tech-heavy Nasdaq composite index sank 30.56 points, or 1.57%, to 1,909.91. The broader S&P 500 lost 14.34 points, or 1.29%, at 1,095.44.

The now Nasdaq is down more than 11% from its 2004 closing peak in late January. The Dow is off more than 6% from its 2004 high in mid-February.