In European Equity Markets the pan-European Stoxx 600 closed down by 1.46 percent. Tech and basic resources were the two biggest losers on aggregate, but most sectors struggled amid fears over global economic growth and rising interest rates. The FTSE 100 in London closed lower by around 1 percent while Germany and France’s main markets both shed around 2 percent in overall value. LVMH ended down by 7.14 percent after reporting a slowdown in sales. Other luxury brands were also below the flat-line, with Moncler off by 10.85 percent and Kering down by 9.62 percent.

In Currency Markets sterling rose half a percent to trade above $1.32 on Wednesday after European Union Brexit negotiator Michel Barnier signaled progress on a deal with the UK over its withdrawal from the bloc, as well as on the crucial Irish border question. Barnier said 80-85 percent of the withdrawal deal was agreed. The pound hit $1.3206, a fresh 3-1/2 month high and strengthened 0.2 percent versus the euro to trade at 87.31 pence. Against the dollar sterling firmed 0.5 percent to as high as $1.3210, its strongest level since Sept. 26.

In Commodities Markets oil prices eased on Wednesday after the IMF lowered its global economic growth forecasts, but markets were supported as Hurricane Michael closed nearly 40 percent of U.S. Gulf of Mexico oil output and U.S. sanctions restricted Iranian exports. Benchmark Brent crude was down 40 cents a barrel at $84.60 a barrel after a 1.3 percent gain on Tuesday. U.S. light crude was down 35 cents at $74.61. The International Monetary Fund cut its global economic growth forecasts for 2018 and 2019 on Tuesday, raising concerns that demand for oil may also decline.

In US Equity Markets stock indexes fell around 1 percent on Wednesday as worries over China and the impact of rising Treasury yields on global growth drove falls in luxury goods companies and chip-makers. Technology stocks slid more than 2 percent, the most among the 11 major S&P sectors, with the Philadelphia Semiconductor index down 3 percent after Swiss vacuum valve maker VAT Group said demand from chip equipment makers was softening. The S&P 500 was down 0.94 percent, at 2,853.32 and the Nasdaq Composite declined 1.67 percent, at 7,608.57.

In Bond Markets Italian bond yields edged lower on Wednesday, stemming heavy losses so far this week, after Economy Minister Giovanni Tria said the government will do all it can to recover market confidence. The two-year Italian government bond yield fell by eight basis points to 1.64 percent after his comments, before settling at 1.68 percent by the close. Italy’s 10-year yield was down two basis points at 3.51 percent, while the spread over Germany tightened to 296 basis points.