Early market indicators suggest a weak start for North American stock markets Tuesday, one day after the Victoria Day holiday.

In today’s economic news, Canadian retail sales advanced 1.2% in March to a record high of $27.4 billion, Statistics Canada said. That’s the third consecutive monthly gain.

Consumer spending increased by at least 1% in six of the seven retail sectors in March, contributing to a sizable 3% gain in the first quarter, StatsCan said.

In a separate release, the statistical agency said wholesale sales rebounded 4.6% in March, reaching $37.6 billion.

Apart from the increase registered in September 2003 (+6.1%) following the power blackout in August, this was the strongest gain in the past 10 years. However, StatsCan said sales for the first quarter of 2004 were down 0.6%, despite the March increase.

In business news, Petro-Canada said it will pay $1.15 billion in cash for a 29.9% interest in the Buzzard oilfield in the British North Sea. The oilfield is operated by another Canadian energy giant, EnCana. Buzzard is the largest oilfield discovered in the area in over a decade and its first oil production is expected by the end of 2006.

Asian markets closed mixed overnight. Tokyo’s Nikkei fell 138.71 points, or 1.25%, to 10,962.93.

In Hong Kong, the Hang Seng rose 29.59 points, or 0.25% , to 11,692.56.

On Monday, while Canadian markets were closed, a renewed rise in oil prices stifled a rally on Wall Street,

Oil prices rebounded back above US$40 a barrel to close within 15¢ of a record high, despite a weekend pledge from Saudi Arabia to pump more crude.

The Dow Jones industrial average fell 8.31 points to 9,958.43.

Blue chip stocks were pulled down by the sharp drop in Altria Group shares after a federal judge ruled the U.S. Justice Department will be able to seek the disgorgement of tobacco industry profits as part of its suit against Philip Morris USA and other cigarette makers. Altria closed down US$4.37, or nearly 9%, at US$44.95.

The S&P 500 index advanced 1.85 to 1,095.41, while the Nasdaq composite index was up 10.89 at 1,922.98.