North American markets may open mixed Thursday as U.S. retail sales in July were weaker than expected, and oil prices retreat from record highs.

In this morning’s economic news, the U.S. Commerce Department is said retail sales rose 1.8% in July amid a big jump in automobile demand, but sales at other retailers, including furniture stores and building-materials stores, were lower than expected.

Excluding autos, all other retail sales rose 0.3% in July.

Economists had forecast a 2.2% increase in total retail sales, but for nonauto sales to increase by 0.6%.

Separately, the U.S. Labor Department said initial jobless claims fell by 6,000 last week.

Later this morning, the U.S. Commerce Department is expected to release the June report on total business inventories. Economists look for another minimal 0.1% increase.

Here at home, Statistics Canada said Canada’s merchandise trade surplus with the world widened in 2004 as prices surged for key export commodities such as energy and metals. Both exports and imports registered big gains, more than offsetting declines in 2003.

Crude-oil prices slipped 28¢ to US$64.62 a barrel in early trading Thursday. The decline came after oil prices jumped to a new intraday record Wednesday, surging $1.83 to US$64.90 a barrel on the New York Mercantile Exchange. Crude briefly touched $65 a barrel after the U.S. Energy Department said oil stocks rose last week but gasoline inventories fell more than expected.

In this morning’s earnings news, ING Canada Inc. said its second-quarter profit rose almost 30% to $223.6 million, aided by its acquisition of property and casualty insurer Allianz Canada.

Overnight in Asia, the benchmark Nikkei 225 index climbed to 12,263.32 points on the Tokyo Stock Exchange, up 165.24 points, or 1.37%.

In Hong Kong, shares reached a 4 1/2-year high. The Hang Seng index rose 98.79 points, or 0.6%, to 15,445.2.

The Canadian dollar opened Thursday at US82.82¢, up 0.2 of a cent. On Wednesday, the loonie rose 0.23 of a cent.

Toronto stocks rallied Wednesday, as the energy sector continued to boom on rising oil prices and the materials sector posted a strong session. The S&P/TSX composite index finished up 85.51 points, or 0.83%, to 10,671.44.

The junior S&P/TSX Venture composite index finished up 3.20, or 0.17%, to close 1,835.95.

In New York, higher oil prices sent markets lower overshadowing overall investor confidence in the economy’s health.

After rallying 104 points to an intra-day high of 10,719, the Dow Jones Industrial Average closed down 21.26 points at 10,594.

The tech-heavy Nasdaq composite index ended down 16.38 points at 2,157 and the S&P 500 index finished 2.25 points lower at 1,229.