North American stock markets appear to be headed lower on Wednesday despite a rallying speech on Tuesday night by U.S. President Barack Obama aimed at instilling confidence in consumers and investors that the recession will eventually reach its end.

The speech followed testimony from U.S. Federal Reserve Board chairman Ben Bernanke earlier on Tuesday in which he stated that “there is a reasonable prospect” that the recession will end this year, leading to a recovery later in the year and into 2010.

Obama’s speech focused on the need to create jobs and stabilize the credit system, adding that specifics on these and other goals would follow, but that billions more may be needed to stabilize the banking system.

At home, Canada’s Big Five banks begin their first-quarter reporting on Wednesday as Toronto-Dominion Bank reports its earnings. Canadian Imperial Bank of Commerce, Royal Bank of Canada and National Bank of Canada follow suit on Thursday.

Overseas, Asian stocks followed Tuesday’s gains in North America. In Japan, the Nikkei 225 stock average rose 192.66 points, or 2.7%, to 7,461.22. Hong Kong’s Hang Seng rose 1.6% to 13,005.08, while South Korea’s Kospi was up 0.3% at 1,067.08.

Shanghai’s benchmark added 0.3%, India’s stock measure advanced 1.6% and Taiwan’s main index was 1.4% higher.

In Europe, the FTSE 100 index in London headed 1% higher to 3,855.87, Germany’s DAX was down 0.58% at 3,918.41 and the Paris-based CAC 40 rose 0.85% to 2,731.12.

On Tuesday, the S&P/TSX composite index rose 211.66 points, or 2.8%, to close at 7,859.33.

Financial stocks led the way, soaring 7.2% in Tuesday’s trading.

Energy stocks surged 5.5%, bolstered by gains in oil futures on speculation that the Organization of the Petroleum Exporting Countries could soon further cut production levels.

The materials group, however, was a drag on the TSX, shedding 5.2% as gold futures continued to fall.

The S&P/TSX Venture composite index declined in Tuesday’s trading, to finish at 853.59, down 25.35 points, or 2.9%.

The Canadian dollar gained half a cent against its U.S. counterpart, to close at US80.43¢.

The main indices in New York also enjoyed a rebound on Tuesday following Bernanke’s pledge to aggressively fight the “severe” recession gripping the U.S. economy.

The Dow Jones industrial average gained 236.16 points, or 3.3%, to close at 7,350.94.

The S&P 500 index added 29.81 points, or 4%, to finish at 773.14.

The Nasdaq composite index rose by 54.11 points, or 3.9%, to 1,441.83.