North American markets will likely open lower Tuesday, as investors begin to assess the costs from hurricane Katrina’s damage. The storm shut down significant oil and gas production facilities in the U.S. Gulf Coast.

Crude-oil futures were $1.09 higher to US$68.20 in electronic trading prior to the opening of the New York Mercantile Exchange. After touching $70.80, an intraday record for the front-month oil contract, futures fell back to close at US$67.20 Monday.

In today’s economic news, Statistics Canada said monthly prices for manufactured goods at the factory gate were down in July, following two months of slight declines. On the other hand, raw materials prices rose in July as crude oil prices increased for a second month.

Separately, the government agency reported that Canada’s current account surplus with the rest of the world, on a seasonally adjusted basis, increased $1.3 billion in the second quarter of 2005 to $4.7 billion. In the capital and financial account (not seasonally adjusted), Canada’s assets abroad again grew more than its international liabilities.

South of the border, the economic calendar is relatively light. The U.S. Commerce Department reports on factory orders for August at 10:00 ET.

Also this morning, the U.S. Conference Board will report on consumer confidence. Meanwhile, the Federal Reserve will release minutes from its August 9 meeting later today.

In other news, the Securities and Exchange Commission is threatening to fine Morgan Stanley more than $10 million for failing to keep email that may have been germane to a number of cases the agency has brought against the firm in recent years.

The Canadian dollar opened at US83.21¢, down 0.22 of a cent from Monday’s close.

European indexes were solidly in positive territory Tuesday, London’s FTSE 100 gaining 38.1 points, 0.73%, to 5,266.20 in its first day back from a U.K. public holiday Monday.

Germany’s DAX was up 9.07 points at 4,821.31 and the Paris-based CAC 40 added 17.51 points to 4,378.78.

Overnight in Asia, Tokyo’s Nikkei 225 index rose 143.31 points, or 1.2%, to close at 12,453.14.

In Hong Kong, the Hang Seng Index rose 85.25 points, or 0.6%, to finish at 14,922.22.

On Monday, North American markets ended higher Monday, as investors shook off jitters over the economic effects of hurricane Katrina and concentrated instead on economic fundamentals. The S&P/TSX composite index finished up 74.33 points , or 0.71%, at 10,558.40.

The influential financials group gained 0.80%.

The Bank of Nova Scotia gained 25¢, or 0.61%, to $41.10 as investors awaited the announcement of Scotiabank’s third quarter earnings, to be released today.

The junior S&P/TSX Composite index inched ahead 0.5 of a point, or 0.03%, to 1,914.84.

In New York, the Dow Jones industrial average closed up 70.22 points, or 0.68%, at 10,467.51 while the S&P500 was up 7.74 points, or 0.64%, at 1,212.84.

The technology-heavy Nasdaq composite index was up 16.78 points, or 0.79%, at 2,137.55.