In European Equity Markets the pan-European Stoxx 600 closed 0.57 higher with almost every sector in positive territory. Technology led the gains, up by 2.45 percent, on earnings. Ericsson rose 8.52 percent after reporting second-quarter results at the higher-end of its guidance. Tele2 B was among the best performing stocks, up by 13.43 percent, on earnings. It reported results above forecasts and raised its guidance for 2018. Meanwhile, paper and pulp maker BillerudKorsnas was off by 15.72 percent, after disappointing results.

In Currency Markets sterling fell to 10-month lows against the dollar on Wednesday after data showed British inflation failed to rise as expected and Brexit-linked political turmoil pushed the currency towards the $1.30 mark. Annual consumer price inflation held steady in June at 2.4 percent – the bottom end of forecasts in a Reuters poll of economists who had expected to see the first increase this year, to 2.6 percent. Trading at $1.3080 before the inflation numbers, sterling fell further to a low of $1.3010, its weakest since Sept. 5. Against the euro the pound fell 0.4 percent to 89.32 pence.

In Commodities Markets oil benchmark Brent crude hit a three-month low on Wednesday after government data showed a rise in U.S. crude inventories and oil production, which highlighted increasing global supply and concerns over weak demand. Brent crude futures fell 33 cents to $71.83 a barrel. The contract hit a session low of $71.19 a barrel, its lowest since April 17. U.S. West Texas Intermediate (WTI) crude futures fell 45 cents to $67.63 a barrel. U.S. crude stocks surprised the market and rose by 5.8 million barrels last week.

In US Equity Markets the S&P 500 traded at five-month highs on Wednesday, with gains in financial and industrial stocks due to strong earnings from marquee companies offsetting losses in the technology and energy sectors. Eight of the 11 main S&P 500 sectors were lower, led by the energy sector’s 1.23 percent decline. The S&P 500 was flat at 2,808.51 and the Nasdaq Composite was down 0.22 percent, at 7,837.66. Morgan Stanley rose 3.3 percent after its profit topped analysts’ estimates on gains in fixed income and equities trading businesses.

In Bond Markets U.S. Treasury yields held steady on Wednesday with the yield curve remaining near its flattest in nearly 11 years in advance of Federal Reserve Chairman Jerome Powell’s testimony on the economy before a House of Representatives committee. The spread between two-year and 10-year Treasury yields was 24.70 basis points after touching 23.40 basis points earlier Wednesday, which was its tightest since July 2007. The yield on the 10-year Treasury was unchanged on the day at 2.862 percent.