North American stocks will likely trade in a narrow range Tuesday as traders await the Federal Reserve’s decision on interest rates later today.

Most rate watchers expect the Fed will not raise rates. The Fed is expected to hold interest rates at 5.25% after 17 straight increases. The accompanying FOMC statement will also be scrutinized to see if the Fed will promise to hold off the rate hike pedal.

In other economic news, Statistics Canada reported the value of building permits slipped marginally in June, but the decline would have been much sharper without a burst of industrial projects in Alberta.

The government agency said municipalities issued permits worth $5.3 billion in June, down 1.4% from May.

The Canadian dollar opened at US89.16¢, up 0.53 of a cent from Friday’s close

On the earnings front, Ensign Energy Services said its second-quarter profit soared 282% to a record $46.6 million on higher drilling activity for oil and gas in North America and elsewhere.

Teva Pharmaceutical more than doubled its quarterly profit on a 77% sales rise, and the Israeli drug maker lifted its 2006 earnings guidance.

Late Monday, natural gas operator Paramount Resources Ltd. reported a big increase in second-quarter profit as the company benefited from a one-time gain on its books from an oilsands transaction. The company said it earned $111.9 million, or $1.65 per share, for the three months ended June 30, compared with a profit of $12.9 million, or 20¢ a share, for the same 2005 period.

Crude-oil prices fell 30¢ to US$76.68 a barrel early Tuesday, a day after prices shot up more than $2 per barrel following BP’s decision to shut down a major oil field in Alaska.

European stock markets rose in early trading, and Asian markets also closed higher.

Japan’s benchmark Nikkei 225 stock index added 310.6 points, or 2.05%, to finish at 15,464.66 points on the Tokyo Stock Exchange.

In Hong Kong, the blue-chip Hang Seng Index rose 94.65 points, or 0.6%, to 17,048.2.

U.S. stocks closed lower Monday amid the spike in oil prices. The Dow industrials fell 20.97 points, or 0.2%, to 11219.38. The Standard & Poor’s 500 index dropped 3.58, or 0.3%, to 1275.78, and the technology-heavy Nasdaq Composite Index lost 12.55, or 0.6%, to 2072.50.

Canadian markets were closed for the civic holiday.