The Canadian market is anticipated to have a mixed opening on Wednesday morning as investors remain attentive to global stock activities and geopolitical developments. Concerns regarding interest rate forecasts and global economic growth may cast a shadow over market sentiment, potentially limiting upward momentum.
On Tuesday, the Canadian market overcame early losses to close slightly higher. Initial declines were driven by hotter-than-expected inflation data and rising geopolitical tensions. However, the market slowly regained ground, ending the day with a modest increase.
According to Statistics Canada, Canada's annual inflation rate rose to 2% in October, up from a three-year low of 1.6% the previous month. The Consumer Price Index (CPI) experienced a monthly increase of 0.4% in October. Likewise, the annual core inflation rate edged up to 1.7%, compared to 1.6% in September, with core consumer prices also posting a 0.4% increase month-over-month.
The S&P/TSX Composite Index, which initially dropped nearly 200 points to 24,787.79, ultimately concluded the session at 25,010.77, marking a gain of 33.83 points or 0.14%.
In Asian markets, trading concluded on a mixed note on Wednesday, preceding the eagerly awaited earnings report from NVIDIA Corp. Market sentiment was also influenced by the People's Bank of China's decision to maintain stable rates and concerns about the escalating conflict between Russia and Ukraine.
European stocks are trading positively on Wednesday, rallying slightly after notable losses in the previous session. Despite ongoing anxieties over the Russia-Ukraine situation, investors are selectively buying stocks, focusing on earnings reports and corporate news, while also evaluating the regional economic outlook.
On the geopolitical stage, the U.S. Embassy in Kyiv announced it would remain closed on Wednesday due to a warning about a potentially significant Russian airstrike on the Ukrainian capital. This precautionary measure followed Russian officials' pledge to respond to President Joe Biden's decision allowing Ukraine to target Russian sites with U.S.-produced missiles—a move that has incited anger within the Kremlin.
Additionally, both the Greek and Spanish embassies in Kyiv have closed to the public, as air raid warnings were sounded multiple times overnight in Ukraine's capital.
In the commodities market, West Texas Intermediate (WTI) crude oil futures have risen by $0.41 or 0.59%, reaching $69.80 per barrel. Conversely, gold futures have decreased by $4.10 or 0.16%, priced at $2,626.60 an ounce, and silver futures have dropped $0.362 or 1.16%, now valued at $30.90 an ounce.
