North American stocks are expected to open higher Thursday, extending yesterday’s rally.

Crude-oil prices were up 33¢ to US$69.47 a barrel in early trading Thursday after a report showed U.S. domestic crude stocks suffered a larger-than-expected decline as refineries boosted production rates to meet peak summer fuel demand.

Economic reports are due on U.S. weekly jobless claims, the June Empire State Manufacturing Index, May industrial production and the Philadelphia Fed’s June Business Index.

Here at home, Statistics Canada reported that the consolidated surplus for all Canadian governments, including the two major pension plans, hit $26 billion during the fiscal year 2005/2006, the second highest level during the last 20 years.

Separately, the government agency reported Canada’s net external liabilities declined by 8.4% from the previous quarter and represented a record low 10.9% of gross domestic product.

The Canadian dollar opened at US89.77¢, unchanged from Wednesday’s close.

In today’s earnings news, Wall Street financial services firm Bear Stearns Cos. reported another record quarter for revenue, and net income rose 81% on strong results in fixed income and equity capital markets, which includes trading and sales.

Overseas, European shares rose following global market gains, rising commodity stocks and merger-and-acquisitions news.

Dutch conglomerate Philips Electronics Thursday said it will buy Intermagnetics General of the U.S. for 1 billion euros (US$1.26 billion) to expand its medical-systems business.

Asian indexes continued to rebound, with Japan leading the way.

The benchmark Nikkei 225 index rose 161.2 points, or 1.13%, to finish at 14,470.76 points on the Tokyo Stock Exchange.

The Bank of Japan left its benchmark rate unchanged at nearly zero, Meanwhile, BoJ governor Toshihiko Fukui fended off calls to resign Thursday.

Fukui said he plans to stay at his position despite being under fire since acknowledging he had invested 10 million yen (US$87,000) several years ago in a fund operated by Yoshiaki Murakami, who was arrested last week for alleged insider trading.

In Hong Kong, the blue-chip Hang Seng Index advanced 187.16 points, or 1.23%, to 15,435.08.

Toronto stocks moved up Wednesday, after losing 300 points in the previous session, as investors cautiously bought back into the market.

The S&P/TSX composite index gained 56.34 points, or 0.52%, to 10,960.68.

The S&P/TSX Venture composite index gained 60.80 points, or 2.58%, to 2,415.57.

In New York, the Dow Jones industrial average rose 110.78 points to 10,816.92, as investors piled back in after yesterday’s losses.

The Nasdaq composite index closed up up 13.53 points at 2,086. The S&P 500 Index rose 6.35 points to 1,230.04.

American markets gained, even though the U.S. government said core inflation rose 0.3% for the third month in a row, all but guaranteeing that the Federal Reserve will boost interest rates later this month.