North American markets look set for a weak start Tuesday morning, ahead of a decision on U.S. interest rates by the Federal Reserve later today.

The Federal Open Market Committee is widely expected to lift the fed funds target rate today to 3% from 2.75%. The decision is expected around 14:15 ET.

Some analysts have expressed concern that the Fed may raise rates more drastically due to strong inflationary pressure in America.

In today’s economic news, Industry Canada said both personal and business bankruptcies rose in March from February,.

A total 7,749 individuals and 788 businesses declared bankruptcy in March compared with 7,098 individuals and 736 businesses in February.

Later today, the U.S. Commerce Department will release of its factory orders report at 10:00 Et. Economists look for a 1.2% decline in factory orders in March reflecting the decline already reported for durable orders.

Among stocks to watch, Biovail Corp. announced it is cutting about 440 jobs, or 20% of its workforce, after selling U.S. commercial operations and product lines to Kos Pharmaceuticals Inc. of Cranbury, N.J.

On Monday, energy shares shrugged off a rebound in oil prices and, together with financial stocks, helped lead Toronto’s S&P/TSX to a solid gain. The jump in oil prices kept U.S. markets in the black at the end of the day.

At close, Toronto’s S&P/TSX composite index added 60.91 points or 0.65% to 9430.21, while the TSX Venture Exchange fell 25.06 points or 1.47% to 1677.56.

On Wall Street, the blue-chip Dow industrials ended the session ahead by 59.19 points or 0.58% to 10251.70. The Nasdaq composite added 7.00 points or 0.36% to 1928.65. The S&P 500 index gained 5.31 points or 0.46% at 1162.16.

AIG, the world’s largest insurer, advanced $2.63 or 5.17% to US$53.48 after saying it will correct five years of results, giving relief to some investors that its accounting missteps are behind the company. It was the day’s biggest rally in the Dow average.

Morgan Stanley, the No. 2 securities firm, dropped $3.12 or 5.93% to US$49.50. The company said its board decided to keep Philip J. Purcell as chairman and chief executive, rejecting demands by former executives that he be ousted.