North American stocks appear headed for a rebound Tuesday, a day after a broad selloff sparked by the U.S. Federal Reserve chairman’s comments on inflation.

North American markets plummeted Monday, after Ben Bernanke told an international monetary conference that inflation remains a concern and the central bank would take a vigilant stand on rates.

The Toronto S&P/TSX composite index plunged 199.2 points to 11,699.49, while the Dow Jones industrial average fell 199.15 points to 11,048.72.

Oil prices retreated Tuesday amid signs that crude supplies remain adequate for now.

Light, sweet crude for July delivery fell 20¢ to US$72.40 US a barrel in Asian electronic trading on the New York Mercantile Exchange.

In today’s economic news, Statistics Canada said construction intentions in both the residential and non-residential sectors cooled off in April after hitting their second highest total on record the month before. Builders took out $5 billion in building permits in April, down 10.6% from March.

The Canadian dollar opened Tuesday at US90.24¢, down 0.30 of a cent from Monday’s close.

In today’s earnings news, Nortel Networks Corp. posted a loss of US$167 million on flat revenue in the first quarter. The loss was about 60% higher than in the same quarter of last year, when Nortel lost US$104 million.

The 2006 figure includes an income tax expense of approximately US$23 million, a shareholder litigation expense of US$19 million, and a benefit of US$35 million in gains on the sale of businesses and assets.

Bernanke’s comments also unsettled European and Asian stock markets on Tuesday.

In morning trade, London’s FTSE 100 gave back 60.7 point, or 1.05% to 5,701.40, Germany’s DAX was down 45.42 at 5,575.77 and the Paris-based CAC 40 tumbled 73.99, 1.51%, to 4,842.05.

In Tokyo, the Nikkei 225 index dropped 283.45 points, or 1.81%, to 15,384.86.

In Hong Kong, the blue-chip Hang Seng Index fell 43.12 points to 15,973.11.

On Monday, the fed chief’s comments sent the S&P/TSX composite index tumbling 199.20 points , or 1.67%, to 11,699.49.

Nine of the 10 TSX main sub-groups were down.

Among individual stocks, Canadian Superior Energy Inc. rose 7¢ to $2.50 after it said it is topping a bid from Petro-Canada for Canada Southern Petroleum Ltd.

The boards of Trizec Properties Inc. and Trizec Canada Inc. agreed to an US$8.9 billion takeover by Brookfield Properties Corp. and investment firm The Blackstone Group.

Brookfield and Blackstone have offered US$29.01 per share in cash for all of the outstanding common shares of Trizec Properties not owned by Trizec Canada.

Investors reacted by sending shares of Trizec Canada up more than 28%, or $7.36 a share, to close at $33.55 on the TSX. Trizec Properties was up $4.08 at US$28.68 on the NYSE. Brookfield Properties was up 31¢ at $34.39 on the TSX.

The Canadian dollar was down 0.29 cent to US90.54¢.

The S&P/TSX Venture composite index fell 26.75 points, or 0.94%, to 2,830.23.

In New York, the market was lower most of the session, but fell significantly after Bernanke’s comments.

The Dow Jones industrial average fell 199.15 points, or 1.8%, to 11,048.72, the Nasdaq composite index lost 49.78 points, or 2.24%, to 2,169.62, while the S&P 500 declined 22.93 points, or about 1.8%, to close at 1,265.29.