In European Equity Markets the pan-European Stoxx 600 closed down 0.3 percent with the different sectors moving mostly lower. Basic resources and autos were the worst performers given their link to trade. On the other hand, financial services and household goods finished higher supported by strong earnings. Private equity fund 3i rose 2.7 percent after a strong earnings report, while LVMH was up by 1.8 percent after posting robust results for the first half of the year. Swiss drug manufacturer Lonza lifted its outlook for the year, prompting shares to jump over 6 percent.

In Currency Markets the pound rose on Wednesday to its highest in a week as traders bet that Prime Minister Theresa May’s decision to take control of Brexit negotiations would make it easier to agree a divorce deal with Brussels. With less than nine months before Britain is due to leave the European Union and May’s own Conservative Party still divided about what sort of trading relationship with Brussels to seek, Brexit talks remain a headwind for the pound. The pound rose to as high as $1.3178 against a broadly weaker dollar. It was trading up 0.1 percent at $1.3154.

In Commodities Markets oil prices rose for a second day on Wednesday after government data showed U.S. crude inventories fell to the lowest since February 2015, easing worries about oversupply that have weighed on markets in recent weeks. Brent crude futures rose 15 cents to $73.59 a barrel, a 0.2 percent gain. U.S. West Texas Intermediate (WTI) crude futures rose 10 cents to $68.62 a barrel, a 0.2 percent gain. Gains were limited though as data from the EIA showed a large drawdown in less-critical West Coast crude stocks, which fell their most since December 2011.

In US Equity Markets the S&P 500 was flat on Wednesday as gains in technology shares offset weak earnings from Boeing, General Motors and AT&T, while investors eyed a meeting between President Donald Trump and head of the European Commission on trade. General Motors fell 6.5 percent after the automaker cut its 2018 profit forecast, citing rising steel and aluminum costs due to tariffs. Ford declined 3.4 percent ahead of results after markets close. The S&P 500 was up 0.12 percent, at 2,823.75 and the was up 0.26 percent, at 7,861.12.

In Bond Markets Euro zone bond yields eased on Wednesday as a note of caution set in before a European Central Bank meeting and talks between the European Union and the United States that are likely to focus on trade. On Wednesday, most 10-year bond yields in the bloc fell 1-2 basis points before trading just marginally lower on the day in late trade. Germany’s Bund yield was at 0.39 percent , still holding below Tuesday’s five-week high at 0.42 percent. Trade tensions were another issue expected to come up at ECB chief Mario Draghi’s news conference on Thursday.