In European Equity Markets the pan-European STOXX 600 index closed down 0.4 percent while Germany’s DAX  and the FTSE  fell 0.8 and 0.9 percent respectively, with British shares also suffering from gains by sterling against the greenback. A decline in utility stocks following a profit warning at France’s Suez and falling tech stocks weighed, while a strong update from Novartis provided some support. Suez fell over 16 percent after the waste and water group revised down its 2017 earnings target due to additional costs in Spain and decisions to close services contracts in Morocco and India. Bank of America Merrill Lynch downgraded Suez to “underperform” from “neutral.” Its fall dragged peer Veolia down 3.8 percent and sent the utilities index down 1.3 percent.

In Currency Markets the US dollar fell to a fresh three-year low against a basket of major currencies on Wednesday after the U.S. Treasury secretary said he welcomed weakness in the currency, and as investors worried about U.S. President Donald Trump’s protectionist agenda. Speaking at the World Economic Forum in Davos on the eve of Trump’s arrival at the Swiss resort, Treasury Secretary Steven Mnuchin said the weaker dollar was positive for U.S. trade. The dollar index, which measures the greenback against a basket of six major currencies, was down 0.93 percent at 89.283, slipping below 90 for the first time since December 2014. The dollar was down about 1 percent against the yen and 0.8 percent against the euro. Sterling jumped above $1.42 after strong British employment data helped extend a recent rally.

In Commodities Markets oil prices rose on Wednesday, boosted by a record 10th straight weekly decline in U.S. crude inventories, though reduced refining activity and rising production signaled U.S. stocks should rise in coming weeks. Overall crude inventories fell by 1.1 million barrels, short of expectations, but the 10-week streak of declines represents a record, according to U.S. Energy Information Administration (EIA) data going back to 1982. A weaker dollar also supported oil prices. U.S. West Texas Intermediate (WTI) futures were up 82 cents at $65.28, highest since December 2014. Brent futures rose 29 cents to $70.26 a barrel, the highest since December 2014. U.S. production rose to 9.9 million barrels a day, nearing the all-time record of 10.04 million bpd set in 1970.

In US Equity Markets the Dow Jones Industrial Average was up more than 100 points on Wednesday morning, powered by gains in industrial stocks such as GE, Boeing and Caterpillar. Caterpillar rose about 1 percent after reporting higher monthly machine retail sales, while Boeing edged up 0.6 percent. The S&P 500 was up 0.26 percent, at 2,846.42 and the Nasdaq Composite was up 0.16 percent, at 7,472.39. Abbott Laboratories rose 3.5 percent after quarterly profit and 2018 adjusted earnings forecast beat estimates. United Continental fell over 10 percent after the airline said it plans to increase capacity, likely threatening its profit margin. American Airlines fell 6.5 percent while Delta Air Lines declined 6.6 percent. Texas Instruments fell 5.4 percent after the company posted its slowest revenue growth in four quarters.

In Bond Markets Bond yields in the euro zone rose on Wednesday, as investors struck a cautious tone the day before a European Central Bank meeting. Bond yields across the single currency bloc were 1 to 3 basis points higher on the day. France’s 10-year bond yield hit its highest point since the ECB’s October meeting at 0.886 percent, while Germany’s 10-year Bund, the benchmark for the region, hovered near multi-month highs. Southern European bonds, the big outperformers this week, were also slightly weaker. Thursday’s ECB gathering is shaping up as a more lively event than anticipated just a few weeks ago: the central bank has flagged “early” 2018 for a revision of its policy guidance and this has led to talk of a possible early rise in interest rates.