Worries about interest rates and oil prices are expected to weigh on North American markets at Monday’s open, despite a sign from Saudi Arabia that oil production may be increased.

Earlier today, the Saudi Oil Minister Ali Naimi urged OPEC on to raise its production ceiling by 1.5 million barrels a day when it meets June 3.

In this morning’s earnings news, Descartes Systems Group Inc., which fired its chief executive last week amid accounting irregularities, said its most recent annual loss was much worse than reported in March and its current first-quarter loss will be larger forecast. CEO Manuel Pietra was fired last Thursday.

In U.S. banking news, SunTrust Banks Inc. is buying Memphis-based National Commerce Financial Corp. in a nearly US$7 billion cash-and-stock deal, the latest merger in the wave of consolidation sweeping the financial sector.

The companies said the combination, which followed a reported bidding war between Atlanta-based SunTrust and Cincinnati-based Fifth Third Bancorp., would create the seventh-largest U.S bank, with US$148 billion in assets and US$97 billion in deposits.

Also today, Citigroup agreed to settle a class-action lawsuit with investors of WorldCom and said it will take a related second-quarter charge of US$4.95 billion.

Overnight in Asia, stocks tumbled on worries about an early rise in U.S. interest rates. Tokyo’s Nikkei plunged 554.12 points, or 4.84%, to 10,884.7 points — its lowest finish since Feb. 26.

In Hong Kong, the Hang Seng Index fell 425.26 points, or 3.6%, to 11,485.5.

European markets are lower at midday. Losses are across the board, with airlines, financial, technology, insurance and auto stocks heading south.

In London, the FTSE 100 is down 1.9% to 4,413.80. In Frankfurt, the Xetra Dax is off 2.36% at 3,808.

In Paris, the CAC 40 Index is down 2.06% at 3,577.80.

On Friday, a stong.S. jobs report sent stock indexes tumbling to triple-digit losses as the data heightened concerns that the Federal Reserve could move as early as next month to raise interest rates.

Toronto’s S&P/TSX composite index closed down 152.9 points at 8,274.79, while ekeing out a gain of 30.82 points for the week.

The junior S&P/TSX Venture Exchange was off 33.71 points at 1,615.05.

On Wall Street, the Dow Jones industrial average dropped 123.92 to 10,117.34, down 108 points on the week. The tech-heavy Nasdaq composite index fell19.78 to 1,917.96, off about two points on the week, while the broader S&P 500 index was 15.29 points lower at 1,098.70.