US stocks advanced broadly, with Boeing gaining for the first time since Sunday's crash of a 737 MAX 8 jet in Ethiopia, while European shares rose on expectations British lawmakers will vote to reject a disorderly no-deal exit for Britain from the European Union.
The euro increased 0.4 percent to $1.1337, the strongest in a week. The significance of such a passage is that if it were to pass, the British Parliament would then vote the next day (Thursday) on whether to instruct the Government to request a postponement of the Brexit departure date beyond 29 March 2019 from the European Union.
Lawmakers will vote later Wednesday on whether Britain should quit the world's biggest trading bloc without a deal. The pound started the day higher after Prime Minister Theresa May announced a revised divorce deal, but dropped by as much as 1.1% versus the dollar as Attorney General Geoffrey Cox said the risks surrounding the Irish backstop - a major sticking point for those who support Brexit - were unchanged.
"Once expectations for a delayed exit from the European Union are confirmed after tonight's vote in parliament, the pound could face more pressure".
The Australian dollar was down 0.2 per cent at US$0.7081, handing back the previous day's modest gains. U.S. producer prices barely rose in February, the U.S. Labor Department reported on Wednesday, resulting in the smallest annual increase in more than 1-1/2 years. The price of oil, one of Canada's major exports, rose as USA crude inventories unexpectedly fell and an official forecast of crude oil supply growth from the world's top producer was revised lower.
NEW YORK, March 13 (Reuters) - World equity markets broadly rose on Wednesday, lifted by investor optimism that British lawmakers will rule out a no-deal Brexit and fresh USA data that highlighted a strong economy with low inflation, an outlook that weakened the dollar. But sentiment is now positive given the sharp year-to-date gains for China (nearly 20%), although the rally here has stalled a little over the past few days, while in the United States the S&P 500 hit a new high for the year yesterday.
Britain's 10-year yield rose three basis points to 1.2 percent. Tepid inflation and disappointing producer price data this week support the Fed's stance of keeping interest rates on hold, denting the dollar.
MSCI's gauge of stocks across the globe gained 0.49 percent while the FTSEurofirst 300 index of leading European shares rose 0.51 percent. The U.S. dollar index, which measures the greenback against a basket of six rival currencies, was 0.43 percent lower at 96.515.
On Wall Street, the Dow Jones Industrial Average rose 155.29 points, or 0.61 percent, to 25,709.95.
In late NY trading, the euro was up to 1.1329 US dollars from 1.1296 dollars in the previous session, and the British pound rose to 1.3217 dollars from 1.3084 dollars in the previous session.
In afternoon trading, US 10-year note yields rose to 2.612 percent from 2.605 percent late on Tuesday. It remained slightly off the session high of $1.328 hit immediately after the vote as uncertainty remains around the process and the path forward.
Gold climbed 0.7 percent to $1,311.06 an ounce, the highest in nearly two weeks. Crude oil climbed after Saudi Arabia was said to extend deep supply cuts. US crude oil futures settled at $58.26 a barrel, rising $1.39 cents, or 2.44 percent.
Price cool: USA consumer prices cool in February
The Fed has a 2 percent target for a separate inflation gauge from the Commerce Department that's linked to consumer spending. Owners-equivalent rent, one of the categories created to track rental prices, rose 0.3%, as did rent of primary residence.
Brexit: MPs to vote on Theresa May's deal
But the changes appear to fall well short of Brexiteers' demands for a unilateral British exit mechanism from the backstop. It is what you do with this second chance that counts. "Because there will be no third chance", Juncker warned.