North American stock markets may climb Friday getting a boost from M&A activity as U.S. traders prepare for a three-day holiday weekend.

U.S. bond markets will close early today, at 14:00 ET, and U.S. financial markets will be closed Monday for Memorial Day.

In today’s M&A news, Nasdaq Stock Market Inc. announced a deal to buy Sweden’s OMX AB. The US$3.67-billion deal for OMX gives Nasdaq an entrance into Europe. OMX operates exchanges in seven Nordic countries.

Coca-Cola announced the purchase of Energy Brands, also known as Glaceau, for US$4.1 billion.

In today’s earnings news, Royal Bank of Canada said its quarterly profit increased by 14% to $1.28 billion as revenue rose 11% to $5.67 billion.

Imax said late Thursday it expects to report a narrower operating loss for the first quarter of 2007 versus the first quarter of 2006.

Gap posted a 26% decline in quarterly profit late Thursday, hit by steep markdowns and a write-down related to store closures.

There are no major economic releases from Statistics Canada today.

The Canadian dollar opened at US92.08¢, down 0.11 of a cent.

South of the border, a further round of U.S. housing data is due, with existing-home sales figures out at 10:00 ET. Economists are expecting sales in April to have slipped to 6.11 million, from 6.12 million.

Key European indexes were mixed in early action while oil prices rose.

Light sweet crude for July delivery rose 49¢ to US$64.67 a barrel in electronic trading on the New York Mercantile Exchange mid-afternoon in Singapore.

Most Asian markets slipped.

In Japan, the benchmark Nikkei 225 stock index lost 215.76 points, or 1.22%, to settle at 17,481.21 points.

In Hong Kong, the blue-chip Hang Seng Index fell 278.31 points, or 1.3%, to 20,520.66, after being closed Thursday for a holiday.

Toronto stocks sank Thursday, putting an end to a run of five consecutive record-setting positive sessions, as investors reacted to a drop in resource prices and crystallized recent gains.

The S&P/TSX composite index dropped 196.24 points, or 1.39%, to 13,946.27.

All 10 TSX main sub-groups were down.

Financials fell 0.28% despite very positive earnings report from Toronto-Dominion Bank.

The S&P/TSX Venture Exchange sank 72.93 points, or 2.22%, to 3,205.99.

In New York, markets fell as investors chose to take profits.

The Dow Jones industrial average fell 84.52, or 0.62%, to 13,441.13, the Nasdaq composite index fell 39.13, or 1.52%, to 2,537.92 and the S&P 500 dipped 14.77, or 0.97%, to 1,507.51.