In European Equity Markets semiconductor firms’ shares were a bright spot on Wednesday in a lackluster European market, weighed down by a fall among mining stocks and banks. The pan-European STOXX 600 index as well euro zone bluechips fell 0.2 percent. Britain’s FTSE 100 lost 0.3 percent. Tech stocks were among the strongest sectoral performers with Apple suppliers Dialog Semiconductor and AMS jumping 3.8 percent and 4.7 percent respectively. Disappointing results from Societe Generale and Commerzbank were a drag on euro zone banks. The sector index fell 1.2 percent. Iron ore miner Rio Tinto was the biggest faller in the basic resources sector, falling 2.3 percent after it reported first half earnings.

In Currency Markets the U.S. dollar hit its lowest level against the euro in more than 2-1/2 years on Wednesday on doubts about another Federal Reserve interest rate increase this year and expectations for European Central Bank hawkishness. The dollar gained slightly against the yen and was last at 110.46 yen, hovering above a more than six-week low touched Tuesday of 109.91 yen. The euro hit $1.1868 its highest level against the dollar since January 2015. The dollar was last up 0.4 percent against the Canadian dollar at C$1.2585 after touching a 1-1/2-week high of C$1.2591. The New Zealand dollar touched a one-week low against the greenback of $0.7411. The dollar index was last down 0.2 percent at 92.857.

In Commodities Markets oil prices gained in choppy trading, as rising refined product demand overshadowed data from the U.S. Energy Department that showed crude inventories did not fall as much as expected last week. Crude inventories in the United States fell by 1.5 million barrels in the week to July 28, the Energy Information Administration said, half the amount that analysts had expected of 3 million barrels. Brent crude futures were up 0.6 percent at $52.09 a barrel, after hitting a session low of $51.18. U.S. West Texas Intermediate crude rose 0.4 percent to $49.36 a barrel, after falling to a low of $48.55 earlier in the session. Spot gold was up 0.1 percent at $1,269.91 an ounce and silver was down 0.2 percent at $16.67 an ounce.

In US Equity Markets  the Dow breached the 22,000 mark briefly in early trading on Wednesday, powered by Apple’s stellar results, before stocks retreated sharply across sectors as investors locked in gains. The Dow was up 0.1 percent, at 21,985.44, the S&P 500 was down 0.31 percent, at 2,468.66. The Nasdaq Composite fell 0.58 percent, at 6,326.31. Apple jumped as much as 6.46 percent after the world’s largest publicly listed company reported strong results and iPhone sales, and signaled its upcoming 10th-anniversary phone is on schedule. Garmin rose 3.80 percent and Humana 4.39 percent after posting strong corporate reports. Cardinal Health fell 8.53 percent after the drug distributor’s 2018 profit forecast missed analysts’ estimate.

In Bond Markets long-dated debt yields fell on Wednesday, and the yield curve flattened to its lowest levels in a week, after the U.S. Treasury Department gave no indications about new long-dated issuance in a quarterly refunding statement. Thirty-year Treasury bonds were last down 4/32 in price to yield 2.85 percent.  Benchmark 10-year notes last rose 1/32 in price to yield 2.2496 percent, from 2.251 percent late on Tuesday.

European Equity Upgrades/Downgrades

• MORRISON (MRW LN) UPGRADED TO HOLD FROM REDUCE AT HSBC
• MELROSE PLC (MRO LN) INITIATED WITH BUY AT GOLDMAN SACHS
• DEUTSCHE POST (DPW GY) RAISED TO BUY FROM HOLD AT COMMERZBANK
• H&M (HMB SS) UPGRADED TO NEUTRAL FROM SELL AT GOLDMAN SACHS