North American stock markets are likely to open higher this morning ahead of a U.S. market shutdown Friday in honour of late president Ronald Reagan.

In economic news, Statistics Canada reported that industries increased their capacity use for the second consecutive quarter between January and March.

StatsCan said the increase was fuelled by strong business investment and growth in domestic and international demand.

The statistical agency said industries operated at 83.5% of capacity, up from 82.9% in the fourth quarter of 2003. This gain brought the rate closer to the most recent high of 85.4% in the fourth quarter of 1999.

South of the border, prices of imported goods rose at the fastest clip in 15 months in May as petroleum prices surged.

Overall import prices rose 1.6% in May after a 0.2% gain in April, the U.S. Labor Department said today. The acceleration mainly reflected a surge in energy prices, which climbed 10.3% in the biggest increase since February 2003.

The increase in overall import prices was twice as large as economists had expected.

Separately, U.S. initial jobless claims rose by 12,000 to a seasonally adjusted level of 352,000 in the week that ended June 5, the Labor Department said. That marked the highest level since the week of April 17. The four-week average, a more reliable gauge of the state of the labor market, also rose — to a six-week high of 346,000.

The Labor Department was also expected to report the May producer price index, but the release has been postponed indefinitely.

Overseas, the Bank of England raised its key interest rate to 4.5%Thursday – the fourth increase in seven months – amid mounting concern about Britain’s rising property prices. The Bank’s Monetary Policy Committee announced an increase of a quarter-point in the base rate, which is what the Bank of England charges on loans to commercial lenders.

Most European shares are higher midday, however the London bourse slipped slightly after the Bank of England’s announcement. London’s FTSE 100 Share Index is down 0.1% at 4,485.7

Frankfurt’s Dax index is ahead 0.2% at 4,006.81 in thin trading.

In Paris, the CAC 40 is up 0.1% at 3,703, in yet another quiet session.

Stock prices climbed overnight in Tokyo and Hong Kong on buying of leading retailers and telecoms.

Japan’s Nikkei rose 126.23 points, or 1.1%, to 11,575.97 points.

In Hong Kong, the Hang Seng Index climbed 82.93 points, or 0.67%, to 12,422.87.

On Wednesday, stocks finished lower as remarks from U.S. Federal Reserve Board chairman Alan Greenspan that the Fed will do whatever is necessary to deal with inflation kept concerns about the pace of rate hikes in focus.

The S&P/TSX composite index fell 94.88 points to 8,317.12, led by losses in financial and resource stocks.

The junior TSX Venture composite index slipped 21.93 points to 1,549.32.

On Wall Street, the Dow Jones industrial average gave up 64.08 points to 10,368.44. The Nasdaq declined 32.92 points to 1,990.61, while the S&P 500 slid 10.85 points at 1,131.33.