In European Equity Markets the pan-European Stoxx 600 rose 0.77% by the session end, basic resources jumping out to 1% gains while oil and gas and autos were the only sectors trading in negative territory. London Stock Exchange (LSE) Group shares added 6.3% after the Hong Kong Exchanges and Clearing made a $36.6 billion bid to combine the two companies. At the other end, Spanish clothing company Inditex fell 3.9% after slightly missing first-half earnings expectations, while French utility company Veolia fell 2.1%.
In Currency Markets the euro fell to a one-week low against the greenback on Wednesday, a day before the European Central Bank is expected to add further stimulus in a bid to boost the region’s economy. ECB policymakers are leaning toward a package that includes a rate cut, a beefed-up pledge to keep rates low for longer and compensation for banks over the side-effects of negative rates, five sources familiar with the discussion said last week. The euro was last down 0.43% on the day at $1.0995.
In Commodities Markets gold rose on Wednesday on expectations of monetary policy easing by top central banks while global growth risks continue to linger, although improved appetite for riskier assets capped bullion’s gains and kept it near a four-week low. Spot gold was up 0.5% to $1,493.32 per ounce. Among other precious metals, silver was up 0.2% to $18.06 per ounce, having hit a two-week low of $17.75 in the previous session. Palladium climbed 1.3% to $1,581.66 an ounce, after hitting its highest since July 11 at $1,590. Platinum rose 0.9% to $938.40.
In US Equity Markets stocks rose slightly on Wednesday as China’s move to ease trade tensions with the United States soothed investor nerves, while shares of Apple gained a day after the launch of its latest iPhones. The S&P 500 was up 0.22%, at 2,986.08 and the Nasdaq Composite rose 0.57%, at 8,130.40. Among other stocks, shares of Micron Technology Inc rose 3.10% after Longbow Research upgraded its stock to “buy”. Wynn Resorts Ltd fell 2.44% and was among the biggest losers on the S&P 500 after the hotel operator announced a $750 million debt offering.
In Bond Markets U.S. Treasury yields rose on Wednesday for a third straight day, moving in lock step with the euro zone bond market, amid uncertainty about Thursday’s European Central Bank meeting, which could prove less-aggressive in easing monetary policy. U.S. benchmark 10-year and 2-year notes climbed to five-week peaks, while those on 30-year bonds advanced to four-week highs. In the euro zone, most 10-year bond yields gained, holding close to recent highs.