North American stock markets are likely to open lower Thursday amid rising oil prices, interest rate concerns and higher inflation in Canada.

Statistics Canada reported today that Canadian consumers paid 1.6% more for goods and services in April than they did a year ago.

Rising energy costs drove the annual inflation rate up from a 0.7% rise in March, the statistical agency said.

However, StatsCan said April’s advance in the Consumer Price Index marked a return to rates prevalent during the last three months of 2003.

The jump in inflation makes it more likely that the Bank of Canada will hike interest rates with its next scheduled announcement June 8.

South of the border, U.S. initial jobless claims rose unexpectedly last week by 12,000 to 345,000 in the week that ended May 15, the Labor Department said. Economists had expected a decline of 6,000 claims. However, the four-week moving average, seen as a more reliable labor-market indicator, dwindled to its lowest mark in more than three years.

Asian markets closed lower overnight..

In Tokyo, the Nikkei shed 105.7 points, or 0.96%, to 10,862.04 points.

In Hong Kong, the main Hang Seng Index plunged 129.79 points, or 1.13%, to 11,339.62.

On Wednesday, the S&P/TSX composite index surged ahead 97.52 points to finish at 8,260.21.

Meanwhile, the junior S&P/TSX Venture composite index rose 23.6 points to 1,557.54.

In New York, the Dow Jones industrial average rose 85.45 points to 10,053.96. The tech-heavy Nasdaq composite index gained 31.25 points to 1,929.07, while the S&P 500 index added 10.55 points at 1,102.04.

The Canadian dollar enjoyed strong gains Wednesday rising 0.72¢ at to close at US72.64¢.