In European Equity Markets stocks climbed to 15-month highs on Wednesday, with banks and construction stocks leading the rally on renewed optimism over a huge economic stimulus in the United States. The pan-European STOXX 600 index rose 1.5 percent. France’s CAC hit a 15 month high on Wednesday, while Germany’s DAX rose to a 22-month high, both gaining around 2 percent. Europe’s defence sector index climbed to a 19-month high on Wednesday, with Rheinmetall up 5.1 percent, after the German military technology group reported better than expected results. Covestro fell 6.7 percent after pharmaceuticals giant Bayer sold a 1.5 billion euros stake in its plastics subsidiary to help raise cash for its takeover of seeds maker Monsanto.

In Currency Markets the dollar hit a seven-week high on Wednesday after hawkish comments from two Federal Reserve officials late on Tuesday increased expectations that the U.S. central bank is closer to raising interest rates. The greenback climbed 1.05 percent to touch a two-week high of 113.92 yen and gained half a percent against the euro to $1.0521. The Mexican peso, seen as the most vulnerable to Trump’s protectionist policies, rose 0.29 percent to 20.04 pesos per dollar. The dollar also rose against sterling, with the pound falling below $1.23 for the first time since late January after weak British manufacturing and credit data. The dollar index jumped 0.8 percent against a basket of six major currencies, its highest since Jan. 11.

In Commodities Markets oil prices were largely steady on Wednesday, paring gains and briefly turning negative, after crude inventories in the United States rose to a record high. U.S. crude stockpiles rose 1.5 million barrels last week, less than forecast, but touching a record high at 520.2 million barrels after eight straight weekly builds. U.S. WTI futures for April delivery was up 4 cents at $54.05, down from $54.44 earlier in the session. May Brent crude futures was 7 cents higher at $56.58 a barrel after earlier trading as high as $57.05 a barrel. Spot gold fell 0.6 percent to $1,241.50 an ounce. Spot silver edged up 0.1 percent to $18.33 an ounce, platinum fell 0.7 percent to $1,012.74 and palladium gained 0.7 percent to $772.15.

In US Equity Markets  the Dow breached the 21,000 mark for the first time ever on Wednesday, while the S&P and the Nasdaq hit record intraday highs, as President Donald Trump’s measured tone in his first speech to Congress lifted investor optimism. The Dow Jones Industrial Average was up 1.15 percent, at 21,050.64. The S&P 500 was up 1.05 percent, at 2,388.52 and the Nasdaq Composite was up 0.96 percent, at 5,881.61.  Lowe’s stock jumped 9.3 percent and was the biggest percentage gainer on the S&P, after the home improvement chain issued an upbeat sales forecast for the year. Intel was down 1.2 percent and was the top drag on all three indexes after Bernstein downgraded the stock to “underperform” and cut its price target.

In Bond Markets  U.S. Treasury yields rose broadly on Wednesday, with the 2-year’s hitting a more than seven-year high, on increased expectations that the Federal Reserve will raise U.S. overnight interest rates at its March meeting. The yield on 10-year notes rose to 2.471 percent, the highest since Feb. 16. Prices on 30-year bonds fell by more than 2 points, pushing yields to 3.074 percent, the highest since Feb. 16. Yields on the 2-year Treasury note rose to 1.308 percent, their highest since August 2009.