Global indicators look positive for North American stock markets Tuesday, ahead of today’s decision on interest rates by the bank of Canada.

The central bank widely expected to announce it is leaving its key interest rate unchanged at 4.25%.

Asian stock markets climbed on Tuesday after recent losses. In Japan, the benchmark Nikkei 225 index climbed 202.25 points, or 1.22%, to finish at 16,882.92 points.

Hong Kong’s Hang Seng index bounced back 2.11%.

European stock markets also rose. The FTSE 100 gained 0.8% to 6,109.1, with mining companies leading the way. France’s CAC 40 climbed 0.8% to 5,430.44, while Germany’s DAX Index added 0.7% to 6,583.24.

Commodity futures, which have been hurt by the recent stock-market fall, rose in electronic trading. Gold futures climbed $6.80 to US$646 an ounce, and oil futures rose 58¢ to US$60.65 a barrel.

In other economic news, Statistics Canada reported that the value of building permits surged to their highest level ever in January, thanks to huge gains in the value of residential and non-residential permits. It was the third time in four months that the $6 billion mark was surpassed.

Builders took out a record $6.3 billion in building permits in January. January’s level was 11.3% higher than December 2006.

The Canadian dollar opened at US84.98¢, up 0.28 of a cent.

South of the border, U.S. productivity grew much more slowly in the fourth quarter of last year than previously thought and labor costs soared.

Nonfarm business productivity rose at a 1.6% rate between October and December, the U.S. Labor Department said today, down from an original estimate of a 3% gain.

In today’s earnings news, Bank of Nova Scotia reported a first-quarter profit of $1.02 billion, up 20% from a year-ago $852 million and exceeding $1 billion for the first time.

Alliance Atlantis Communications Inc. posted a fourth-quarter loss of $16.6 million after a big tax hit, contrasting with a year-ago profit of $24.8 million.

In M&A news, Citigroup announced it was buying Japanese brokerage Nikko Cordial in a deal worth around US$11 billion. It already has a 4.9% stake in the broker.

North American stock markets fell Monday, deepening losses sustained in a global market downturn that started last week, as investors remained bearish after a sustained bull market run.

The S&P/TSX composite index fell by 152.02, or 1.18%, to 12,711.25.

All 10 TSX indices moved lower.

The energy sector gave up 1.18%. Light, sweet crude for
Research in Motion Inc. announced a $250 million earnings restatement related to mistakes made in granting stock and options. It also announced Jim Balsillie would step down as chairman, while remaining co-CEO. RIM shares fell $1.43, or 0.89%, to $158.62.
The S&P/TSX Venture composite index lost 111.37 points, or 3.63%, to 2,995.39.

In New York, markets ended down, after spending part of the trading session in positive territory, as investors couldn’t shake off concerns over both the domestic and global economies.

The Dow Jones industrial average lost 63.69, or 0.53%, to 12,050.41, the Nasdaq composite index fell 27.32, or 1.15%, to 2,340.68, and the S&P500 index lost 13.05, or 0.94%, to 1,374.12.