In European Equity Markets the pan-European Stoxx 600 finished up 1.2 percent during the day’s deals, with all sectors and major bourses in positive territory. Europe’s banking index was among the top performers Wednesday morning, up almost 2 percent amid support from Italy’s notoriously fragile lenders. Banco BPM, Ubi Banca and Intesa Sanpaolo all jumped higher amid reports the country’s Deputy Prime Minister, Matteo Salvini, could be prepared to review the government’s 2019 budget.

In Currency Markets the US dollar fell on Wednesday, as risk appetite improved, bolstered by higher stocks and a stronger euro, which was boosted by hopes for a resolution of Italy’s budget. In mid-morning trading, the dollar index was down 0.2 percent at 96.627. The euro, the largest component in the dollar index, rose 0.2 percent at $1.1392. The European Commission took its first step toward disciplining Italy over its draft budget and said the government should face EU action to reduce its deficit.

In Commodities Markets oil prices rose more than 1 percent on Wednesday, recovering from the lowest levels in months, after U.S. government data showed strong demand for gasoline and diesel, but gains were limited by concern over rising global crude supply. Brent crude futures rose 51 cents to $63.04 a barrel. U.S. West Texas Intermediate (WTI) crude futures gained 96 cents to $54.39 a barrel. U.S. crude stocks rose 4.9 million barrels last week. More than expected. Crude inventories have risen for nine straight weeks, the longest streak of increases since March 2017.

In US Equity Markets stocks recovered from a two-day selloff on Wednesday as strong earnings from Foot Locker and gains in technology stocks lifted investor sentiment ahead of the Thanksgiving holiday. Foot Locker Inc shares jumped 15.9 percent after the footwear retailer posted its first gain in same store sales in six quarters that also trumped expectations. Shares of Nike Inc, a Foot Locker supplier, rose 1.3 percent. The S&P 500 was up 0.54 percent, at 2,656.03 and the Nasdaq Composite was up 0.94 percent, at 6,973.87.

In Bond Markets Italian bonds rallied on Wednesday, pushing two-year yields down as much as 23 basis points as markets shrugged off the European Commission’s rejection of Rome’s draft budget and focused on the possibility of compromise between the two sides. Italy’s two-year bond yield fell 23 bps to touch 1.15 percent, the lowest in almost two weeks, while 10-year yields were down 13 bps, falling to about 3.49 percent. The rally in riskier euro zone bonds dented demand for safer debt, with 10-year German yields rising 2 basis points to 0.37 percent.