North American stocks may open higher Tuesday, but investors are likely to be cautious ahead of an expected decision this afternoon from the Federal Reserve to increase interest rates.

Traders will be focused on the policy statement that will accompany what’s expected to be yet another quarter-percentage point increase. The Fed has lifted rates 14 times since June 2004 by quarter-point increments to 4.5%.

Markets also will see the release of March consumer confidence from the U.S. Conference Board.

The Canadian dollar opened Tuesday at US85.78¢, up 0.21 of a cent from Monday’s close.

Crude oil futures held steady Tuesday morning at above $64 US a barrel. Light, sweet crude for May delivery was flat at US$64.16 a barrel on the New York Mercantile Exchange by midday in Europe.

Overseas, European equities were mixed, although auto makers and technology companies led a modest rebound. The German DAX 30 rose 0.1% ahead of the business sentiment poll, the French CAC 40 also rose 0.1% as did the United Kingdom’s FTSE 100.

Asia markets ended mostly higher, as technology, metal stocks and retailers advanced while banks and brokerages dropped. The benchmark Nikkei 225 index added 0.2% on the Tokyo Stock Exchange.

Toronto stocks retreated slightly Monday, as energy and financial indexes were down, offsetting a strong day in the materials sector.

The S&P/TSX composite index fell 32.62 points, or 0.27%, to 12,078.52.

The S&P/TSX Venture composite index gained 31 points, or 1.13%, to 2,770.56.

In New York, markets were mixed as investors awaited the U.S. Federal Reserve’s interest rate announcement tomorrow afternoon.

The Dow Jones industrial average closed down 29.86 points at 11,250.11. The Nasdaq composite index added 2.76 points to 2,315.58. The S&P 500 fell 1.34 point to 1,301.61.