North American stocks look set to open weaker Wednesday as investors react to a stronger-than-expected U.S. May consumer-prices report.

In today’s economic news, U.S. core consumer prices climbed for a third straight month in May, rising 0.3% and topping expectations.

The increase likely seals another interest rate increase from the U.S. Federal Reserve when it meets at the end of the month.

Toronto stocks plunged Tuesday, as investors continued to rush out of commodities, in particular gold, as the U.S. dollar rebounds and as pessimism over the prospects of the global economy grows. U.S. markets were also down on expectations interest rates were headed up.

In Canadian economic news, Statistics Canada today reported that manufacturing shipments declined in April, losing most of March’s gains.

The government agency said a substantial drop in the production of aerospace products and parts was largely behind April’s 1.5% decrease in shipments which stood at $50.4 billion. This was the third decline so far in 2006, and followed March’s 1.6% advance in shipments. Excluding the aerospace industry, shipments were down a more modest 0.4%.

Separately, StatsCan reported that new motor vehicle sales edged down in April, giving up the minimal gains realized in March.

The Canadian dollar opened at US89.96¢, up 0.09 of a cent. On Tuesday, the loonie had plunged 1.18¢ to US89.87¢ after closing above US91¢ Monday for the first time since early 1978.

In Europe, stocks were mostly lower Wednesday. Shares in Airbus’s parent company plummeted as new delays in the delivery of its superjumbo A380 caused the credibility of the company’s management and strategy to be called into question.

French insurer AXA agreed to buy Credit Suisse Group’s insurance unit Winterthur for US$9.93 billion, strengthening its business in Europe and emerging markets.

Asian stock markets closed mixed.

Tokyo’s benchmark Nikkei 225 index added 90.96 points, or 0.64%, to finish at 14,309.56 points, after tumbling 4.14% Tuesday, its biggest drop in two years.

In Hong Kong, the blue-chip Hang Seng Index rose 13.50 points, or 0.1%, to 15,247.92.

On Tuesday, the S&P/TSX composite index dropped 293.24, or 2.62%, to 10,904.34. After spending most of the year in positive territory, the index is now at its lowest point since early December 2005.

It was the biggest one-day drop in the TSX since a 300-point plunge on April 28, 2004.

The TSX has now lost almost 1,000 points in the last seven trading sessions — about 8.4% of its value.

The S&P/TSX Venture composite index sank 194.26 points, or 7.62%, to 2,354.77, as investors fled the resource-heavy junior bourse.

In New York, the Dow industrials were down 86.44 points at 10,706.14. The Nasdaq fell 18.85 points to 2,072.47, while the S&P 500 Index was down 12.71 points at 1,223.69