North American stocks may move lower Tuesday amid concerns higher oil prices and continuing inflation.

Canada’s annual inflation dropped one tenth of a percentage point to 2.4% in July, Statistics Canada said today.

Higher prices for gasoline, fresh fruit and other items were enough to cancel out the benefit the GST cut that took effect July 1, the government agency said.

The Canadian dollar opened at US89.41¢, down 0.06 of a cent.

Crude-oil prices rose 5¢ to US$72.50 a barrel early Tuesday. Iran was expected Tuesday to formally reject the call by the United Nations for the oil exporter to stop its nuclear research program.

In earnings news, Toll Brothers said Tuesday its fiscal third-quarter profit fell 19% as a downturn in U.S. the housing market resulted in a dip in revenue and caused the luxury home builder to reduce the number of lots it controls.

Bank of Montreal kicks off the parade of Canadian bank earnings later today.

Overseas, European stock markets edged lower, while Japan’s Nikkei 225 index rose 212.13 points, or 1.33%, to 16,181.17 on the Tokyo Stock Exchange.

In Hong Kong, the blue-chip Hang Seng Index rose 141.87 points, or 0.83%, to 17,149.75.

Toronto stocks rallied Monday buoyed by gains in financial stocks as Canada’s banks prepare to release quarterly earnings.

The S&P S&P/TSX composite index gained 92.1 points, or 0.8%, to 12,136.93.

The junior TSX Venture composite index rose 7.33 points higher to 2,617.07.

In New York, U.S. stocks were dragged lower by disappointing results at Lowes Cos. and the rebound in oil prices.

In New York, the Dow Jones industrial average moved 36.42 points lower to 11,345.05. The Nasdaq composite index lost 16.2 points to 2,147.75 while the S&P 500 index gave back 4.78 points to 1,297.52.