Interest rates are projected to remain on the higher side for an extended period. Bank of Canada’s Governor has already warned that the rising goods and services prices will have an influence on inflation and the interest rate hike.
Statistics Canada revealed on Tuesday that Canada’s inflation rates were slower in January at 5.9 percent, however, grocery prices and mortgage interest costs were on a rise. Mortgage interest costs reached 21.3 percent in January.
The U.S. Fed Reserve minutes will be published on Wednesday at 2.00 pm ET and that might reveal the discussions on a probable rate hike.
Ahead of the anniversary of the Ukraine invasion, Russian President Vladimir Putin has revealed that Chinese Premier Xi Jinping will be visiting Russia. Moscow is looking ahead to an increase in trade between the countries with a target of $200 billion by 2024.
TSX Composite Index closed at 20,252.64, down 262.60 points or 1.28 percent.
Gold futures are up 5.4 points or 0.27 percent at 1,847.8. Silver futures are slightly down 0.07 percent at 21,875.
Gildan Activewear Inc. (GIL.TO) reported a decline in fourth-quarter earnings to $84 million, or $0.47 per share from earnings of $174 million, or $0.89 per share last year. On an adjusted basis, earnings were $117 million, or $0.65 per share. Net sales for the fourth quarter declined 8 percent to $720 million.
Looking ahead, the company expects revenue growth to be in the low single digit range; and adjusted earnings per share in line with 2022.
European shares are trading mostly lower. CAC 40 of France is down 7.10 points or 0.10 percent. DAX of Germany is declining 12.44 points or 0.07 percent. FTSE 100 of England is sliding 55.00 points or 0.69 percent. Swiss Market Index is gaining 36.65 points or 0.33 percent.
Euro Stoxx 50 which provides a Blue-chip representation of supersector leaders in the Eurozone, is down 0.13 percent.
Asian stocks closed lower on Wednesday. Chinese shares fell. The benchmark Shanghai Composite index dropped 0.47 percent to 3,291.15. Hong Kong’s Hang Seng index lost 0.51 percent to settle at 20,423.84.
Japanese shares were down. The Nikkei average fell 1.34 percent to 27,104.32 while the broader Topix index ended 1.11 percent lower at 1,975.25.
Australian markets finished lower. The benchmark S&P/ASX 200 slipped 0.30 percent to 7,314.50 while the broader All Ordinaries index closed 0.37 percent lower at 7,517.
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