Trading on Bay Street is expected to be light today with U.S. markets closed for Independence Day, and little direction being offered by overseas markets.

European indices edged higher in early action and Asian stock markets closed generally mixed, with prices falling in Tokyo following last week’s declines in U.S. markets. Tokyo’s Nikkei Stock Average of 225 issues fell 179.78 points or 1.53% to 11541.71.

In Hong Kong, the key Hang Seng Index edged up 31.98 points or 0.26% to 12252.11. Prices opened lower as investors took their cue from last week’s declines on Wall Street.

Traders said market players were increasingly nervous about prospects for U.S. stocks ahead of quarterly earnings reports this week.

In Toronto, markets will be waiting to see whether the downward pressure on Nortel Networks shares continues. On Friday, following a negative report and a downgrade Nortel stock tumbled 64¢ to $6.05 after the Wall Street Journal said Nortel’s board has found accounting tricks were behind 2003 profits. Also, CIBC World Markets downgraded the shares to “sector performer.” And Nortel said its board of directors intends to seek repayment of any unjustified bonuses.

The Canadian dollar surged last week as the weak payrolls report sparked a selloff in the U.S. currency, rising 0.55¢ to US75.52¢. The loonie surged US1.47¢ over the week.

The Toronto market’s S&P/TSX composite index closed well off the lows of the day but still lost 58.27 points at 8487.31 for a loss of 10.46 points over the week, shortened by the Canada Day holiday on Thursday. The junior TSX Venture Exchange gained 8.91 points at 1579.26.

On Wall Street, the Dow industrial average lost 51.33 points at 10282.83, losing 89.01 points on the week. The Nasdaq composite index eased 8.89 points at 2006.66 to lose 18.81 points over the week while the Standard & Poor’s 500 index retraced 3.56 points at 1125.38.

The Fed boosted key U.S. interest rates by a quarter-point last Wednesday. The Bank of Canada is to make its next announcement on interest rates July 20.