Bay Street May Open On Mixed Note

(RTTNews) - It's likely to be a mixed start for the Canadian market Wednesday morning, with investors tracking global stocks and following the developments on the geopolitical front.

Concerns about the outlook for interest rates and global economic growth may weigh on sentiment and market's upside.

The Canadian market pared early losses and settled marginally up on Tuesday. Stocks fell early on, hurt by hot inflation data and escalating geopolitical tensions, but recovered gradually to eventually end the day's session on a slightly positive note.

Data from Statistics Canada showed the annual inflation rate in Canada rose to 2% in October from an over-three-year low of 1.6% in the previous month. The consumer price index increased 0.4% in October over the previous month.

The annual core inflation rate in Canada increased to 1.7% in October, up from 1.6% a month earlier. On a monthly basis, core consumer prices rose by 0.4% in October, after being flat in the prior month.

The benchmark S&P/TSX Composite Index, which dropped nearly 200 points to 24,787.79 in early trades, settled at 25,010.77, gaining 33.83 points or 0.14%.

Asian markets closed on a mixed note on Wednesday ahead of the much-anticipated earnings update from NVIDIA Corp. People's Bank of China holding rates steady as well as worries about the escalation in the Russia-Ukraine conflict also impacted market sentiment.

European stocks are up in positive territory on Wednesday, recovering a bit after posting sharp losses in the previous session. Despite persisting concerns about Russia - Ukraine conflict, investors are picking up stocks, focusing on earnings and other corporate news, in addition to assessing the regional economic outlook.

On the geopolitical front, the U.S. Embassy in Kyiv said it would stay closed Wednesday after receiving a warning of a potentially significant Russian air attack on the Ukrainian capital.

The precautionary step came after Russian officials promised a response to President Joe Biden's decision to let Ukraine strike targets on Russian soil with U.S.-made missiles — a move that angered the Kremlin.

The Greek and Spanish embassies in Kyiv have closed to the public today, after air raid sirens were activated in the Ukrainian capital several times overnight.

In commodities, West Texas Intermediate Crude oil futures are up $0.41 or 0.59% at $69.80 a barrel.

Gold futures are down $4.10 or 0.16% at $2,626.60 an ounce, while Silver futures are down $0.362 or 1.16% at $30.900 an ounce.