North American markets will likely open flat Tuesday as traders weigh earnings releases, higher oil prices, and interest rates.

At 9:00 ET, the Bank of Canada is expected to announce another quarter-point increase in interest rates to curb inflation.

The Canadian dollar opened at US87.83¢, down 0.2 of a cent.

In U.S. economic news, existing home sales in March and April consumer confidence are both expected to decline from last month, based on economists’ expectations.

Crude-oil and gold futures both were stronger in early trade, with crude futures rising 32¢ to US$73.65 a barrel and gold up $6.10 to US$630 per troy ounce.

In corporate news, a management change at Sun Microsystems was well-received, with shares of the company rising more than 8% in after-hours trading. CEO Scott McNealy resigned from the post, turning the reigns over to Jonathan Schwartz, the chief operating officer.

In earnings news, Petro-Canada reported a jump in net profits in the first quarter, but a big tax charge in Britain and operational problems hampered the company during the period.

Canadian Pacific Railway said its first-quarter profit increased 38% to $111 million, from $80.7 million a year earlier, beating analysts’ forecasts.

AT&T gained 1.7% on in pre-market trading after its earnings rose 63% in the first quarter, the first time it reported combined results after SBC Communications’ acquisition of the company.

Overseas, Europe’s largest oil company, BP, reported a 15% profit decline on declining production, higher taxes and non-operating costs, offsetting a 27% rise in oil prices. Swedish auto maker Volvo rallied in Stockholm trade after it posted a 23% profit rise and upped its forecast for industry-wide European and North American truck sales. On the results, European markets edged higher.

In Japan, the Nikkei 225 index added 55.89 points, or 0.33%, to finish at 16,970.29 points.

In Hong Kong, the Hang Seng Index fell 127.9 points, or 0.77%, to 16,577.77.

Toronto stocks ended sharply lower on Monday, as energy, financial and information technology sectors retreated, while financial shares dropped ahead of Tuesday’s expected interest rate hike by the Bank of Canada.

The S&P/TSX composite index closed down 94.99 points, or 0.76%, at 12,342.23.
The S&P/TSX Venture Exchange index lost 27.56, or 0.88%, to 3,095.85.

U.S. stocks ended lower on Monday as the drop in oil prices dragged down shares of energy companies.

The Dow Jones industrial average was down 11.13 points, or 0.10%, to end at 11,336.32. The S&P 500 was down 3.17 points, or 0.24%, at 1,308.11. The Nasdaq composite index was down 9.48 points, or 0.40%, to at 2,333.38.

A reduced 2007 forecast from online brokerage TD Ameritrade Holding Corp. and a disappointing report from Xerox overshadowed positive results from Dow component Caterpillar Inc.