The dollar index rose to 94.3 against a basket of currencies on Wednesday, its strongest level since late July, as investors turned to safety amid concerns about the pace of the global economic recovery and rising COVID-19 infections worldwide. At the same time, the House approved a bill to keep the government funded through December and avoid a shutdown before the election. The US currency also found support after Fed's Evans struck a hawkish tone by noting that the central bank could raise rates before inflation averages 2%.

The IHS Markit US Services PMI fell to 54.6 in September 2020 from a 17-month high of 55.0 in the previous month and slightly below market expectations of 54.7, a preliminary estimate showed. New business growth was the strongest for 18 months, with new business from abroad rising at a steep rate. Meanwhile, employment continued to increase solidly, albeit at a softer pace than in August following a slower upturn in backlogs of work. On the prices front, service providers increased their selling prices steeply in September alongside a sharp rise in cost burdens. Looking ahead, business confidence moderated amid election and COVID-19 uncertainty.

US stocks extended losses in afternoon trade on Wednesday driven by a sharp decline in technology shares. Leading the tech rout was Tesla, with stocks falling more than 10% after the company’s Battery Day event failed to lift sentiment. Amazon, Apple and Alphabet dipped more than 3% while other tech giants such as Microsoft and Facebook also dipped into negative territory. Investors digested remarks from Fed officials that point to a slow economic recovery and the need for further fiscal stimulus.

European stock markets closed in the green on Wednesday with the DAX 30 advancing 0.5% to 12,656, as exporters were helped by a weak euro, which touched a two-month low during the session. At the same time, investors hoped for more stimulus in the region after September's PMI survey pointed to stagnation across the Eurozone private sector as fresh lockdown measures to contain the pandemic led to a contraction in service activity. Meanwhile, ECB board member Mersch told Bloomberg that the Eurozone economy and inflation have not deteriorated since the last ECB meeting. The FTSE 100 jumped 1.3%; the CAC 40 added 0.8%; the IBEX 35 rose 0.4%; and the FTSE MIB ended 0.3% higher.

WTI crude rose more than 1% to trade around $40.4 a barrel on Wednesday, after data from the EIA showed crude oil stockpiles in the US dropped by 1.639 million barrels last week. Prices were already rising amid a better-than-expected flash manufacturing PMI data from the Eurozone, Germany, France and Australia. On the other hand, the number of coronavirus cases continues to rise worldwide while Libya’s National Oil Company said it expects oil output to rise to more than 250,000 bpd by next week.

The S&P/TSX Composite Index traded lower after a positive start on Wednesday, as investors wait for Prime Minister Trudeau’s plan announcement to help Canada recover from the fallout of the coronavirus crisis later in the day. Mounting concerns over a spike in global COVID-19 infections weighed on sentiment. On the corporate front, Ford Motor Co said that will invest CAD 1.95 billion in its Oakville and Windsor plants in Canada as part of a tentative deal with autoworkers.

The average prices of single-family houses with mortgages guaranteed by Fannie Mae and Freddie Mac in the United States jumped 1 percent from a month earlier in July 2020, the same as an upwardly revised 1 percent rise in June. It is the biggest gain since March of 2013, with prices ranging from +0.6 percent in the West North Central division to +2.0 percent in the New England division. Between May and July 2020, prices increased by over 2 percent, which represents the largest two-month price increase observed since the start of the index in 1991. The housing market has been recovering as record-low mortgage rates continue to boost demand for new homes and many people move away from the big cities due to the coronavirus pandemic. Year-on-year, housing prices went up 6.5 percent.

Natural gas futures reversed the course from earlier this week, when prices touched a two-month low of $1.81/MMBtu amid a high level of inventories in storage, to climb above $2.00/MMBtu driven by expectations of strong demand for the upcoming fall and winter seasons. Still, US natural gas production and demand will drop in 2020 from record highs last year as coronavirus-induced lockdowns dragged economic activity.

The industrial confidence index in Colombia went up 10 points from the previous month to +1.5 in August 2020, remaining well below pre-pandemic levels and following the easing of coronavirus lockdown measures. Output expectations for the next quarter increased sharply (30.1 vs 14.9 in July) and sentiment improved regarding the current level of orders (-23.9 vs -34.2). Meanwhile, the stock of finished products dropped (1.7 vs 6.3).