North American stock markets are expected to continue their decline on Wednesday on concerns about the stalling economic recovery.

In Toronto, stocks appear poised to open lower, following world markets, as commodities prices continue to drop. Additionally, talk about the need for a second U.S. stimulus plan is weighing on sentiment on both sides of the border while American investors are apprehensive about the start of corporate earnings season this afternoon.

Economic jitters continued to sweep financial markets on Wednesday, weakening stocks overseas, propelling the Japanese yen to a six-week high and dragging oil down to around $62 a barrel.

U.S. stock index futures pointed to a flat open on Wednesday, following steep losses the previous session, with investors nervous about the start of the corporate earnings season.

Overseas, global markets sank Wednesday along with commodities prices, as oil prices dropped to US$62 a barrel, and hopes for a rapid recovery of the global economy.

Japan’s benchmark Nikkei 225 stock average tumbled 227.04 points, or 2.4%, to 9,420.75 — its lowest close in six weeks.

In Hong Kong, the Hang Seng index dropped 0.8%, to 17,721.07 while South Korea’s Kospi lost 0.2% to 1,431.02. Mainland China’s Shanghai Composite index – the world’s best-performing index this year – slipped 0.3%, while Australia’s key stock measure was flat.
The benchmark index of the Toronto Stock Exchange plunged lower for a second consecutive day on Tuesday, led by a drop in financial services sector stocks.

European bourses were modestly lower as trading got underway. Britain’s FTSE 100 was down 0.3%, France’s CAC 40 retreated 0.6% and Germany’s DAX fell 0.2%.

On Tuesday, the S&P/TSX composite index dropped 183.08 points, or 1.8%, to finish at 9,844.35.

The financials group tumbled 2.5% during Tuesday’s trading.

The S&P/TSX Venture composite index edged slightly higher on Tuesday, adding 4.93 points, or 0.5%, to close at 1,069.56.

The Canadian dollar fell by half a cent against the U.S. dollar, to close at US85.76¢.

U.S. stock market indices were weighed down by energy and industrial stocks on Tuesday.

The Dow Jones industrial average closed at 8,163.60, down 161.27 points, or 1.9%.

The S&P 500 index dropped 17.69 points, or 2%, to close at 881.03.

The Nasdaq composite index slid 41.23 points, or 2.3%, to end at 1,746.17.