In Asian Equity Markets China stocks fell on Wednesday as risk appetite took a hit after Premier Li Keqiang warned of economic downward pressure while new locally transmitted COVID-19 cases spiked to a near three-month high, lifting the prospect of fresh curbs in Beijing. At the midday break, the blue-chip CSI300 index was down 0.39 percent at 4,820.96 points, while the Shanghai Composite Index lost 0.38 percent to 3,492.46 points. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.33 percent. Japanese markets were closed for a public holiday. The Australian benchmark share index rose 1.3 percent.

In Currency Markets the dollar held within striking distance of the year’s peaks on the euro and yen on Wednesday, as investors looked for the Federal Reserve to begin unwinding pandemic-era policy support faster than central banks in Europe and Japan. Moves were slight in Asia ahead of the Fed’s meeting later in the day and the dollar bought 113.84 yen, against a 2021 peak of 114.69, and traded at $1.1582 per euro against the year’s top of $1.1522 per euro. The U.S. dollar index held overnight gains to sit at 94.074. Sterling sat just above a two-week low at $1.3628 in Asia.

In US Equity Markets Wall Street’s main indexes rose modestly on Tuesday to intraday record highs as a strong earnings season continued to lift sentiment for equities, while investors were looking ahead to a critical Federal Reserve meeting. The Dow rose 0.39 percent, to 36,054.96, the S&P 500 gained 0.33 percent, to 4,629.04 and the Nasdaq Composite added 0.12 percent, to 15,614.45. Pfizer shares rose 5.2 percent after the drugmaker said it expected 2021 sales of the COVID-19 vaccine it developed with German partner BioNTech to reach $36 billion.

In Commodities Markets oil fell further below $85 a barrel on Tuesday, still close to a three-year high, in choppy trade ahead of weekly U.S. supply reports expected to show a rise in crude inventories. Brent crude was down $0.07 at $84.64 a barrel. U.S. crude was down $0.41 at $83.64 a barrel. Spot gold was down 0.3 percent at $1,787.04 per ounce. U.S. gold futures settled down 0.4 percent to $1,789.40. Silver fell 2.3 percent to a two-week low of $23.46 per ounce. Platinum lost 2.4 percent to $1,038.82 per ounce, while palladium declined 1.8 percent to $2,011.69.

In European Equity Markets stocks crept up to a record high on Tuesday as a strong outlook from hearing aid maker Demant supported healthcare stocks, although broader gains were stifled by losses in miners and the prospect of major central bank meetings. The pan-European STOXX 600 index closed 0.1 percent higher at 479.71 points, with healthcare stocks leading gains with a 1.3 percent rise. Mining stocks led losses, down 2.9 percent on a slump in iron ore and copper prices, as loose supply conditions and a poor demand outlook for China rattled metal markets.

In Bond Markets U.S. Treasury yields fell and the curve steepened on Tuesday as the market awaited a likely Federal Reserve announcement that it will start tapering its asset purchases, while hoping for clues on seemingly persistent inflation and future interest rate hikes. The benchmark 10-year yield was last down 2.6 basis points at 1.547 percent. The two-year yield falling as low as 0.444 percent. It was last down 5.9 basis points at 0.4559 percent. The longest end of the curve inverted for a fourth straight session, with the 20-year yield last at 1.9712 percent and the 30-year yield at 1.9583 percent.