Stocks are looking to rise at Tuesday’s open, as traders celebrate the easing of tensions between the U.S. and Iraq. Oil and gold prices are falling, but the rest of the market is looking at a relief rally after Iraq agreed to the unconditional return of UN weapons inspectors last night.

The corporate news out today isn’t all that positive, but the Iraq news is overwhelming it. Retailing giant Best Buy reported that its profit fell 27% last quarter on higher expenses due to new store openings and efforts to beef up its Canadian business. Also, Alcatel SA is cutting another 1,000 jobs, and proposing to either sell or close some U.S. operations. And, chipmaker Hitachi Ltd. cuts its profit outlook.

In economic news, Canada’s Monthly Survey of Manufacturing for July is out today. Statistics Canada reports that manufacturing shipments rose 1.0% in July to $43.6 billion, the first increase in three months. Strong output of motor vehicles and petroleum and coal products drove the increase. 14 of 21 industries reported higher shipments, representing 74% of the total. Inventories rose 0.6% in July, the third increase in four months. Manufacturers operated at 82.7% of capacity in the second quarter, up from 80.9% in the first quarter. The rate of capacity use advanced in 18 of the 21 industry groups.

In Europe, stocks are higher already today, primarily on the Iraq news. Airlines are gaining, as are luxury goods firms Bulgari and LVMH. The FTSE has gained 77 points to 4,121, despite news that Tesco plc reported slower sales growth. The CAC 40 gained 61 points to 3,202. The DAX is up 69 points to 3,388.

Overnight in Asia, markets rallied too. The Nikkei added 302 points to 9,544. The Hang Seng gained 202 points to 9,707.

In business news, Barrick has announced plans for a US$2 billion mine development program, adding 2 million ounces at $125 per ounce. It aims to double its earnings by 2006, based on $325 gold price, significantly improving ROE.