North American stocks may open lower Monday morning, pressured by a rise in oil prices after an escalation in violence in the Mideast.

Crude-oil prices rose 65¢ to US$73.89 a barrel in early trading Monday as the Mideast crisis worsened.

In M&A news, Teck Cominco Ltd. is offering $2.7 billion more cash but less stock for Inco Ltd. in a revised takeover offer valued at $82.50 a share. Inco shareholders would receive, subject to proration, $82.50 a share in cash or 1.1293 Teck Cominco Class B subordinate voting shares plus five cents per Inco share.

SanDisk agreed to buy M-Systems, another supplier of data-storage technology, for stock currently valued at about US$1.55 billion. The deal is the latest sign of consolidation among companies associated with flash memory.

In earnings news, Brookfield Properties Corp., the real estate arm of Toronto-based Brookfield Asset Management, said its second-quarter profit dropped to US$30 million, from a year-earlier US$41 million, after a large Canadian tax bite.

HSBC Holdings reported a 15% rise in first-half net profit on strong revenue growth in new businesses and emerging markets and as costs declined in corporate and investment banking.

In today’s economic news, Statistics Canada reported that economic activity remained essentially unchanged in May, after edging up 0.1% in both March and April.

Goods production declined (-0.5% in May) for a third straight month, more than offsetting the gain in services (+0.2%).

The Canadian dollar opened at US88.94¢, up 0.59 of a cent.

In U.S. economic news, the July Chicago Purchasing Managers Index is due. The PMI is expected to fall to 55.7% from 58.5%.

Overseas, European stock markets edged off recent 10-week highs.

In Japan, the benchmark Nikkei 225 index gained 113.94 points, or 0.74%, to finish at 15,456.81 on the Tokyo Stock Exchange.

In Hong Kong, the blue-chip Hang Seng index rose 16.30 points, or 0.1%, to 16,971.34.

On Friday, Toronto’s S&P/TSX composite index advanced by 64.77 points to 11,823.68 on gains led by materials stocks. The benchmark index added 405.35 points on the week.

The S&P/TSX Venture composite index moved up 14.3 points to 2,590.62.

U.S. stocks staged a broad rally Friday on hopes the Federal Reserve won’t follow through with another rate increase at its next meeting after a report showing soft second-quarter gross domestic product. The Dow Jones industtgained 119.27 points, or 1.1%, to 11219.70. The S&P’s 500-stock index rose 15.35, or 1.2%, to 1278.55, and the tech-heavy Nasdaq composite Index jumped by 39.67, or 1.9%, to 2094.14.