In European Equity Markets stocks closed slightly higher Wednesday, after the resignation of President Donald Trump’s economic advisor and the European Union’s threat of tariffs on U.S. goods heightened fears of a global trade war. The pan-European Stoxx 600 closed 0.37 percent higher Wednesday, with most sectors and major bourses in positive territory. Europe’s auto stocks were among the best performers, up 0.4 percent. Renault shot up by 8 percent after Reuters reported that it was in talks with Nissan to sell most of the French government’s stake in the car-maker to its Japanese alliance partner. The stock later pared those gains as traders pointed to a denial of the plans by Nissan.

In Currency Markets the US dollar was trading near a 14-month low against the yen on Wednesday as investors grew cautious about the outlook of the greenback after a top economic advisor to the Trump administration resigned stoking fears of a trade war. The dollar fell 0.4 percent to 105.45 yen its lowest since Monday and within touching distance of a 14-month low of 105.24 hit last Friday. Sterling fell to its weakest level against the euro since late November on Wednesday, as investors worried about Britain’s ability to secure a favourable divorce deal with the EU, ahead of two Brexit-related speeches later in the day.

In Commodities Markets oil prices fell on Wednesday after U.S. government data showed an increase in inventories and as financial markets slid amid concerns that Washington’s plans for import tariffs could spark a trade war. Rising U.S. crude output and climbing U.S. inventories have weighed on oil prices. The United States is set to become the world’s biggest oil producer this year, threatening to offset supply cuts by OPEC, Russia and other producers. West Texas Intermediate (WTI) crude futures fell 28 cents to $62.32 a barrel, a 0.5 percent loss. Brent crude futures fell 29 cents to $65.50 a barrel, a 0.4 percent loss.

In US Equity Markets stocks fell on Wednesday as investors fretted that the exit of staunch free trade supporter Gary Cohn could encourage President Donald Trump to go ahead with his threat to impose hefty tariffs and risk a global trade war. The losses were broad-based, but shares of manufacturing titans Boeing and Caterpillar were hit hard, slipping more than 1 percent on worries about higher input costs and trade barriers outside the United States. The S&P 500 fell 0.69 percent to 2,709.19 and the Nasdaq Composite declined 0.59 percent to 7,328.45. Netflix’s 1.2 percent decline after a “hold” rating from Stifel dragged the S&P consumer discretionary index down 0.84 percent.

In Bond Markets Euro zone government bond yields fell on Wednesday on speculation that planned U.S. import tariffs including on goods from Europe could impede the European Central Bank’s plan to withdraw post-crisis monetary stimulus. Most euro zone government bond yields fell 2-5 basis points. The yield on Germany’s 10-year government bond, the benchmark for the region, was down nearly 2 bps at 0.66 percent. Lower-rated southern European debt, seen as more dependent on loose ECB policy, outperformed, with yields falling 3-7 basis points. Portuguese 10-year yields fell to a more than one-month low of 1.837 percent, before inching up to 1.857 percent.