North American markets pointed to another lower opening on Tuesday as U.S. officials are set to testify to Congress on their efforts to complete the US$700-billion bailout.

U.S. Treasury Secretary Henry Paulson, Federal Reserve Board chairman Ben Bernanke and Securities and Exchange Commission chairman Christopher Cox were scheduled to testify before lawmakers this morning, who are working with the Bush administration on details of the bailout.

Meanwhile, stock markets overseas fell on Tuesday as investors ponder the impact that the U.S. government’s bailout plan would have on the global economy. Hong Kong shares dropped after two days of gains. The benchmark Hang Seng index fell 2.7 per cent to 19,105.79 at the close of Tuesday’s trading. Japanese financial markets were closed for the autumnal equinox national holiday.

Britain’s FTSE 100 was down 2.% early in the afternoon in London, while Germany’s DAX index declined 0.7% and France’s CAC-40 lost 1.7%.

Meanwhile, here at home, the rate of increase in the cost of living hit the highest level in more than five years last month, increasing to 3.5% on an annual basis from 3.4% in July, Statistics Canada revealed on Tuesday.

However, the pace of price increases that concerned the Bank of Canada just a few months ago appears to be slowing. Although gasoline and energy costs were the key drivers of annualized inflation, the core price index, which excludes energy among other things, was up 1.7% from the same period in 2007 — still below the BofC’s 2% target.

On Monday, the S&P/TSX composite index fell 274.92, or 2.1%, to 12,638.07, led by weakness in the financial and energy groups.

Crude for October delivery, which expired Monday, surged 15.7% to settle up US$16.37 at US$120.92 per barrel. Earlier in the day, oil futures had gone up more than 20%, hitting US$130 per barrel.

Gold for December delivery rose US$44.30 to close at US$909 an ounce on the Comex division of the New York Mercantile Exchange, ending above $900 for the fist time since Aug. 4.

The Canadian dollar rose for a third day, thanks to rising commodities and weakness in the U.S. dollar compared to most of the world’s major currencies. It closed up more than cent, at US96.77¢.

The junior S&P/TSX Venture composite index increased 1.73% to 1,575.99.

On Wall Street, he Dow Jones industrial average slipped 3.3%, or 373 points, to 11,016. The S&P 500 fell 48 points, or 3.8%, to 1,207, led by financial stocks. The Nasdaq composite index was down 95 points, or 4% to close at 2,179.