Toronto’s main stock index could open higher on Wednesday as a rise in the price of oil could spark a rally.

With no Canadian economic data due out to set a tone, investors may look to the U.S. consumer price index data for direction.

South of the border, consumer prices fell 0.1% in March, the U.S. Labour Department said Wednesday. Year over year, consumer prices fell 0.4%, the first annual decline since August 1955.

Later today, the U.S. Federal Reserve is scheduled to release its beige book, which provides insights into regional economic conditions.

Oil rose above $US50 a barrel on Wednesday, ahead of OPEC’s latest monthly market report, which is expected to make a big cut in world oil demand forecasts.

In international banking news, UBS AG, Switzerland’s largest bank, said Wednesday it expects a first quarter loss of nearly US$1.75 billion and that it will cut 8,700 jobs worldwide by the end of next year.

After markets closed Tuesday, tech bellwether Intel announced first-quarter profit that easily beat analysts’ expectations.

Japan’s benchmark Nikkei 225 stock average lost 99.72 points, or 1.1%, to 8,742.96. Hong Kong’s Hang Seng closed up 89.46 points, or 0.6%, at 15,669.62.

On Tuesday, the benchmark index of the Toronto Stock Exchange fell as lower oil prices pulled down the heavily weighted energy sector.

The S&P/TSX composite index fell 54 points, or 0.58%, to finish at 9,231.62. Earlier in the session, it hit a high of 9,330.61.

The junior S&P/TSX Venture composite index slipped 3.94 points, or 0.4%, to finish at 976.92.

In New York, U.S. stocks fell, dragged down by a surprising drop in retail sales. Retail sales in March snapped two months of increases.

The Dow Jones industrial average dropped 137.63 points, or 1.71%, to 7,920.18. The S&P 500 fell 17.23 points, or 2.01%, to 841.50. The Nasdaq composite index shed 27.59 points, or 1.67%, to 1,625.72.

IE