Stocks are expected to advance at Tuesday’s open, as traders build on Monday’s gains and prepare for this afternoon’s rate announcement from the U.S. Federal Reserve. Futures trading is pointing to a positive start for the day.

The Fed’s announcement is due out 14:15 ET. The U.S. central bank is expected to leave the target overnight lending rate steady for now, at 1%, a 46-year low. This monetary policy has helped to dampen most market interest rates and boost the purchase of stocks and bonds for more than 18 months.

However, many analysts expect the Fed will end its promise to be “patient” about raising rates. Markets could fall depending on whether the Fed sends a signal that it plans to raise rates at its next meeting in June or the following meeting in August.

Canadian investors will be looking south for direction today, too. The biggest piece of economic news above the 49th parallel this week is the jobs report, which is due out on Friday.

In this morning’s earnings news, second-quarter profits at CGI Group Inc. grew 15% on higher revenues. The company said it earned $51.5 million or 13¢ per share for the three months ended March 31. That compared with a profit of $44.8 million or 11¢ per share a year earlier.

At midday in Europe, London’s FTSE 100 is up 0.8% at 4,523.80 as investors ramped up prices and caught up to international market gains after Monday’s bank holiday.

Frankfurt’s Xetra Dax Index is down 0.4% at 3,992, as the market continues to look for new direction. Positive news has been overshadowed by overall cautious sentiment ahead of the FOMC meeting.

In Paris, the CAC40 Index is down 0.6% at 3684 as investors remained cautious ahead of the Fed meeting.

Japan’s market was closed for a holiday. In Hong Kong shares rose. The Hang Seng Index climbed 0.6% to 12,023.87. Traders said the upside was limited as investors wait for the U.S. Federal Reserve meeting.

On Monday, the Dow Jones Industrial Average rose 88.43 points, or 0.86%, to 10,314.00. The Nasdaq Composite Index rose 0.97%, or 18.57 points, to 1,938.72.

The Toronto stock market finished almost unchanged on Monday as gains in energy and base-metal shares were offset by a slide in the information technology sector. The S&P/TSX composite index closed up 13.63 points at 8,257.60.

Nortel Networks shares fell another 11% Monday as Ontario’s stock-market watchdog considered barring Nortel executives and other insiders from buying or selling the stock until the company’s accounting mess is resolved. The stock dropped another 59¢ to close at $4.60 on Monday, the first day since early September that Nortel shares have been worth less than $5.

Monday’s share price decline — following a 33.5% drop last week after Wednesday’s news — came as the Ontario Securities Commission considered imposing a management cease-trading order on anyone at Nortel who had access to inside information since the third-quarter report was issued in October.

Such an order could be in place by May 15, the OSC’s deadline for Nortel to file its first-quarter 2004 financial report.