The outlook for North American markets is mixed Thursday as increasing oil prices and investor preoccupation with a potential interest rate hike will likely direct trading once again.

In economic news, U.S. producer prices rose 0.7% in April, evidence that inflation in the pipeline stayed mild last month despite strong economic growth.

U.S. retail sales fell by 0.5% in April, while first-time jobless claims climbed by 13,000 last week.

Here at home, the number of new motor vehicles sold in March advanced 4.1% compared with February, Statistics Canada said today.

According to StatsCan, this third consecutive increase brought first quarter sales up to about the same level as in the last quarter of 2003.

In today’s earnings news, ING Group, the Amsterdam-based international financial services company, reported first quarter 2004 operating net profit of $1,908 million (1,191 million euros), a 32% increase from first quarter of 2003.

Profit growth was driven mainly by a 65.1% jump in operating net profit at ING’s banking operations, boosted by higher income and lower risk costs. Insurance performance also improved.

The solid ING earnings have pushed European shares slightly higher at midday. Frankfurt’s Xetra Dax Index is up 0.86% at 3,808 points.

London’s FTSE 100 is ahead 0.44% at 4.432.1 points, while in Paris the the CAC 40 is up 0.87% at 3,555.18 points.

Overnight in Asia, Tokyo’s Nikkei plunged 328.48 points, or 3%, to 10,825.1.

Hong Kong share prices also declined. The key Hang Seng Index shed 131.24 points, or 1.1%, to finish at 11,396.94.

On Wednesday, the price of crude jumped US59¢ to US$40.65 a barrel — a level not seen since the first Gulf War in 1990. That helped to shave 77.79 points off the S&P/TSX composite index, which closed at 8,127.27.

The price of crude jumped US59¢ to US$40.65 a barrel — a level not seen since the first Gulf War in 1990.

On Wall Street, market losses were also severe. The Dow Jones industrials tumbled 136.69 to 9,882.78. The tech-heavy Nasdaq composite index lost 43.51 points to 1,887.84, while the broader S&P 500 lost 15.67 points to 1,079.78.