In European Equity Markets the pan-European Stoxx 600 was down by 0.45 percent with the different sectors moving mostly lower. Basic resources were among the worst performers, off by nearly 1.61 percent, after reports that the Trump administration could impose a 25 percent tariff on $200 billion of imported Chinese goods. Telenet Group rose 6.56 percent, after proposing a gross dividend of about 5.2 euros per share. Air France-KLM also jumped 4.33 percent after posting results above expectations despite several workers’ strikes during the quarter.

In Currency Markets the U.S. dollar edged higher against a basket of peers on Wednesday, as major currencies traded in narrow ranges ahead of the conclusion of the Federal Open Market Committee meeting later in the day. The offshore Chinese yuan slid more than half a percent on reports of the new tariffs. The dollar index, which measures the greenback against a basket of six currencies, was up 0.13 percent at 94.615. Sterling held near a one-week low before a Bank of England policy meeting that is widely expected to raise interest rates for the second time since the global financial crisis.

In Commodities Markets oil prices fell about 1 percent on Wednesday as a surprise increase in U.S. crude stockpiles and growing OPEC production fed worries that global supplies could swell, while investors continued to worry that trade tensions could hit energy demand. Brent crude futures fell to $73.08 a barrel, a 1.5 percent loss. U.S. West Texas Intermediate (WTI) crude futures fell to $68.09 a barrel, a 1 percent loss. U.S. crude inventories rose 3.8 million barrels in the week to July 27 as imports jumped. Analysts polled by Reuters had expected a decrease of 2.8 million barrels.

In US Equity Markets stocks rose on Wednesday as Apple’s robust earnings report boosted shares of technology companies and eased worries over an escalating trade war between the United States and China. Apple jumped 4.7 percent to a record high of $199.26, after forecasting blowout current-quarter sales and was the biggest boost to all the three major indexes. The S&P 500 was up 0.10 percent, at 2,819.03 and the Nasdaq Composite rose 0.48 percent, at 7,708.69. Only three of the 11 major S&P sectors were higher.

In Bond Markets the yield on the benchmark 10-year U.S. Treasury note broke above 3 percent on Wednesday for the first time since June 13 after the government said it intended to increase its borrowing from the bond market in the coming quarter to fund spending and debt obligations. The U.S. Treasury announced it will introduce a new benchmark 2-month bill starting in October 2018 and increase the size of debt auctions in the coming months. The government needs to fund a rising budget deficit even as the Federal Reserve continues to reduce its massive bond portfolio.