In European Equity Markets the pan-European STOXX 600 index hovered below the flatline, with sectors and major bourses pointing in opposite directions. Europe’s basic resources sector, with its heavy exposure to China, led the losses, down 1.5%. British broadcaster ITV saw its shares trading lower on Wednesday, losing nearly 6% after the company reported lower revenues ahead of the launch of its streaming service. Meanwhile, Siemens rose toward the top of the index after the German company posted better-than-expected operating profit. Shares gained around 4.5%

In Currency Markets the U.S. dollar was roughly flat on Wednesday as foreign exchange traders held off from making big moves as they weighed news about progress in the trade talks between the United States and China. Against a basket of its rivals, the dollar was 0.07% weaker to 97.56. However, against the euro, the dollar was slightly higher, up 0.08%. The euro held flat against the dollar and within recent ranges as currency traders remained undecided on the inflationary outlook for the euro zone economy and the latest developments on the trade war front.

In Commodities Markets oil futures rose 1 percent on Wednesday, boosted by a surprise drawdown in U.S. crude stockpiles, but an escalating U.S.-Chinese trade fight limited oil’s gains as investors worried about the global outlook for energy demand. Brent crude futures rose 66 cents to $70.54 a barrel, a 0.9 percent gain. U.S. WTI crude futures rose 86 cents to $62.26 a barrel, a 1.4 percent gain. U.S. crude inventories fell by 4 million barrels in the week to May 3, the Energy Information Administration said. Analysts had expected an increase of 1.2 million barrels.

In US Equity Markets stocks were nearly flat in choppy trading on Wednesday, ahead of a crucial round of trade talks that will be held against the backdrop of additional tariffs on Chinese goods due later this week. Electronic Arts Inc rose 2.9% after the videogame maker posted better-than-expected quarterly revenue, riding on the popularity of its battle royale game, “Apex Legends”. Chesapeake Energy Corp fell 1.4% after the oil and gas producer’s first-quarter net loss widened, hit by a fall in production and lower crude prices.

In Bond Markets U.S. Treasury yields fell on Wednesday with longer-dated yields hitting five-week lows as investors piled money into low-risk government debt amid an escalating trade battle between economic giants China and the United States. The yields on benchmark 10-year Treasury notes were down at 2.448% after hitting a five-week low of 2.426% earlier in the session. Treasury yields bounced off their initial lows after U.S. President Donald Trump said on Twitter China was “now coming to the U.S. to make a deal.”