European stock markets closed in the green on Wednesday, recovering from yesterday’s losses, on hopes that Italy will postpone early elections and boosted by company merger news. On Wednesday, the Italian center-left Democratic Party said it was ready to hold talks with the anti-establishment 5-Star Movement, rising expectations of a new coalition. Autos shares were among the best performers, after Il Sole 24 Ore newspaper reported that merger talks between Fiat Chrysler and Renault are back on the table. The DAX 30 gained 152 points, or 1.3% to 11,803; the FTSE 100 surged 79 points, or 1.1% to 7,204, boosted by a weaker pound on little hopes of a Brexit deal agreement with the EU, ahead of the meetings between the UK PM Johnson with German Chancellor Angela Merkel on Wednesday and with French President Emmanuel Macron on Thursday; the FTSE MIB added 362 points, or 1.8% to 20,847; the CAC 40 rose 91 points, or 1.7% to 5,436; and the IBEX 35 went up 83 points, or 1% to 8,702.

Stocks of crude oil in the United States fell by 2.732 million barrels in the week ended August 16th 2019, after a 1.58 million rise in the previous period and compared with market expectations of a 1.889 million decrease. Meanwhile, gasoline inventories increased by 0.312 million barrels after falling by 1.412 million in the previous week and against market consensus of a 0.169 million gain.

US stocks rallied on Wednesday boosted by strong quarterly results from Target and Lowe's while investors await the publication of the Federal Reserve's policy meeting minutes later in the day. The Dow Jones jumped 245 points, or 1%; the S&P 500 advanced 26 points, or 0.9%; and the Nasdaq climbed 80 points, or 1% around 15 minutes after the opening bell.

The annual inflation rate in Canada was at 2 percent in July 2019, unchanged from the previous month and above market expectations of 1.7 percent, as a slowdown in cost of services was offset by a rise in prices of goods, namely durable goods and food. On a monthly basis, consumer prices went up 0.5 percent, rebounding from a 0.2 percent fall in June and compared with market forecasts of a 0.2 percent gain.

The Russian rouble rose more than 0.8% on Wednesday, boosted by higher oil prices after API data showed a larger-than-expected fall in US inventories and by month-end tax payments that prompt export-focused companies to convert their foreign currency proceeds into roubles.

Total mortgage application volume in the US dropped 0.9 percent in the week ended August 16th, after a 21.7 percent jump in the previous period, data from the Mortgage Bankers Association showed. Refinances rose just 0.4 percent as the average contract interest rate for 30-year fixed-rate mortgages was little changed at 3.90 percent, the lowest in about three years. Meanwhile, mortgage applications to purchase a home were down 4 percent. Year-on-year, total mortgage applications increased 70 percent, driven by a 180 percent climb in refinances and a 5 percent rise in mortgage purchase.

Oil prices went up on Wednesday, after latest EIA data showed US crude inventories fell more than expected. Oil prices were also supported by increased tensions in the Middle East, after US Secretary of State Mike Pompeo said the US will take every action it can to prevent an Iranian tanker in the Mediterranean from delivering oil to Syria. However, investors’ worries regarding a global economic slowdown amid an unresolved trade dispute between the world´s two biggest economies capped gains. Brent crude oil rose as much as 1% to $60.67 a barrel while US crude went up nearly 0.1% to $56.49 a barrel around 10:30 AM New York time.

Iron ore prices fell nearly 8% to $86.5 a tonne on Wednesday, the lowest since March 29th, on worries of slower demand from China amid a prolonged U.S.-China trade war and after miner BHP revised prices lower over the next year.

Germany sold 30-year bonds with a negative yield for the first time in an auction on Wednesday, amid ongoing growth concerns and expectations that major central banks will unveil fresh stimulus measures to support their economies. The average yield in the auction was -0.11%.