Economic calendar: Canadian CPI, Wall Street earnings

• European markets set to open lower

• Canadian CPI inflation for December

• Morgan Stanley, Procter & Gamble and Bank of America to report earnings

European stock markets launched Wednesday's session lower following steep drops on Wall Street yesterday and in Asia today. Rising yields are pressuring growth stocks and small caps. Markets are nervous and may remain so until the Fed meeting next week.

There are some data releases scheduled for the day ahead. CAD traders will look forward to CPI release in the early afternoon while oil traders will focus on API data in the evening. Oil prices remain elevated after an explosion led to a shutdown of a major Iraq-Turkey pipeline. Earnings season on Wall Street is gathering pace with earnings reports Morgan Stanley, Bank of America and Procter & Gamble among others.

1:30 pm GMT - Canada, CPI inflation for December. 

• Headline. Expected: 4.8% YoY. Previous: 4.7% YoY

• Core. Expected: 3.5% YoY. Previous: 3.6% YoY

1:30 pm GMT - US, housing market data for December.

• Building permits. Expected: 1700k. Previous: 1717k

• Housing starts. Expected: 1650k. Previous: 1679k

9:40 pm GMT - API report on oil inventories. Expected: -2.0 mb. Previous: -1.08 mb

Central bankers' speeches

• 2:15 pm GMT - BoE Governor Bailey

Wall Street earnings reports

• Alcoa (AA.US) - after market close

• Bank of America (BAC.US) - before market open

• Unitedhealth Group (UNH.US) - before market open

• Morgan Stanley (MS.US) - before market open

• US Bancorp (USB.US) - before market open

• Procter & Gamble (PG.US) - before market open

• United Airlines Holdings (UAL.US) - after market close

• State Street (STT.US) - before market open