In European Equity Markets the pan-European Stoxx 600 closed down 1.8%, with all sectors and major bourses trading firmly in the red.  British infrastructure group Balfour Beatty was the standout performer on Wednesday, with its stock rising 10% and having hit its highest since 2002 after strong results. Shares of steel and mining giant Arcelormittal meanwhile were down 8%, falling close to the bottom of the Stoxx 600 and erasing the boost enjoyed after the U.S. tariff announcement on Tuesday.

In Currency Markets the pound rose on Wednesday after inflation picked up in July, but the currency could not move very far from two-and-a-half year lows as concerns about a no-deal Brexit clouded investor sentiment. The consumer price index rose 2.1% year-on-year last month from 2% in July, above a Reuters poll forecast of a 1.9% increase. The Bank of England’s inflation target is 2%. Against the dollar, the pound was up 0.1% at $1.2074, above a low of $1.2015 hit on Monday, its weakest since January 2017. Versus the euro, the British currency was ahead slightly at 92.615 pence.

In Commodities Markets oil prices fell on Wednesday on weak global economic data and a rise in U.S. crude inventories, almost erasing the previous session’s strong gains which followed the United States’ move to delay tariffs on some Chinese products. Brent crude was down $1.81, or 3%, at $59.49 a barrel at 1323 GMT, after rising 4.7% on Tuesday, the biggest percentage gain in a day since December. U.S. West Texas Intermediate (WTI) crude futures were down $1.80, or 3.1%, at $55.30 a barrel, having risen 4% the previous session, the most in just over a month.

In US Equity Markets indices fell 1.5% on Wednesday, as a closely watched U.S. bond market indicator pointed to a renewed risk of recession following poor economic data from Germany and China. The S&P 500 was down 1.52%, at 2,881.71. The Nasdaq Composite fell 1.76%, at 7,875.50. Chip-makers were also down, with the Philadelphia chip index falling 2.09%. The biggest decliner on the S&P 500 index was Macy’s Inc, down 17.2%, after the department store operator cut its full-year profit forecast as it discounted heavily to clear excess spring season inventory.

In Bond Markets the U.S. Treasury yield curve inverted on Wednesday for the first time since June 2007, in a sign of investor concern that the world’s biggest economy could be heading for recession. The inversion – where shorter-dated borrowing costs are higher than longer ones – saw U.S. 2-year note yields rise above the 10-year yield.  U.S. benchmark 10-year Treasury note yields were last down at 1.586%, from 1.68% late on Tuesday. At the short end of the curve, U.S. 2-year yields fell to 1.571% from Tuesday’s 1.669%.