In European Equity Markets the pan-European Stoxx 600 edged into negative territory during the afternoon session, with sectors mostly lower. Basic resources led the losses with a 1.3% decline while autos and bank stocks both rose around 1%. German telecommunications company 1&1 Drillisch topped the European blue chip index with a 9.7% rise during the afternoon session. At the other end of the Stoxx 600, Belgian retailer Colruyt fell nearly 15% following the company’s full-year results.

In Currency Markets the pound rallied more than half a percent on Wednesday as investors trimmed their short bets before the Bank of England’s policy meeting on Thursday where it may strike a relatively more confident tone than its peers. European Central Bank chief Mario Draghi hinted at more policy easing this week and the U.S. Federal Reserve may strike a dovish stance at the outcome of a two-day policy meeting later on Wednesday. Against the dollar, the pound rallied more than 0.5% to $1.2633 and strengthened 0.4% to 88.78 pence versus the euro.

In Commodities Markets oil futures edged up on Wednesday as government data showed U.S. crude inventories fell more than expected, while the prospect of a trade deal between Washington and Beijing also supported prices. Brent crude futures were up 11 cents, or 0.2 percent, to $62.25 a barrel. U.S. WTI crude futures rose 5 cents, or 0.1 percent, to $53.95 a barrel. On Tuesday, it had recorded its biggest daily rise since early January. After weeks of swelling, U.S. crude stocks fell by 3.1 million barrels in the last week compared with analysts’ expectations for a draw of 1.1 million barrels.

In US Equity Markets indexes were flat on Wednesday, as investors refrained from taking positions ahead of the Federal Reserve’s policy statement that is expected to open the door to future interest rate cuts. The S&P 500 was up or 0.07%, at 2,919.92. The Nasdaq Composite was down 6.74 points, or 0.08%, at 7,947.14. Shares of Allergan gained 3.7% after the drugmaker said its constipation drug, jointly developed with Ironwood Pharmaceuticals Inc, improved symptoms of bloating, pain and discomfort in patients suffering from irritable bowel syndrome with constipation.

In Bond Markets U.S. Treasury yields rose on Wednesday, tracking the European market after steep falls the previous day, as investors rebalanced positions ahead of a pivotal decision and statement from the Federal Reserve later in the session. U.S. benchmark 10-year yields on Tuesday fell to their lowest since early September 2017, while 30-year yields hit their weakest since late October 2016, after European Central Bank President Mario Draghi hinted at more stimulus if regional inflation fails to reach its target.