European stocks are likely to open higher on Wednesday after rates on U.S. government debt fell for the fourth straight session, driven by evidence of slowing economic activity that could prompt the Federal Reserve to cut interest rates later this year.

Final composite Purchasing Managers' survey results from the euro area and the UK are the top economic news due on Wednesday. At 2.45 am ET, France's statistical office INSEE is scheduled to issue industrial production data for April. Output is expected to grow 0.5 percent on month, in contrast to the 0.3 percent decrease in March.

Indian shares were modestly higher in early trade on Wednesday after suffering heavy losses in the previous session amid concerns that a smaller majority will see Prime Minister Modi face more difficulty in doling out reforms and infrastructure spending.

Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues from Wall Street overnight, amid easing of global yields and on optimism that data showing weakness in the US labor market will encourage the US Fed to lower interest rates in the coming months. Asian markets closed mixed on Tuesday.

The Japanese stock market is significantly lower on Wednesday, extending the losses in the previous session, despite the broadly positive cues from Wall Street overnight. The Nikkei 225 is falling to near the 38,500 level, with losses across most sectors led by auto makers, financial and technology stocks.

Our forex market report offers an overview of critical economic and financial events that impact the global forex markets. Traders should closely monitor developments to fine-tune their trading strategies accordingly.

Expert market comment made by senior analyst Alex Kuptsikevich of the FxPro Analyst Team: Oil is probably setting up for a repeat of 2020 or 2014

The dollar hit a low against the euro and sterling on Tuesday as softening US economy signals raised chances of earlier Fed rate cuts.

Copper is testing the $10,500 mark, after buyers took a breather from last week’s rally that breached all-time highs of $11,000.

Monday's weaker ISM survey pushes the dollar lower. Euro/dollar rallies to a 3-month high ahead of the ECB. The BoC could announce a rate cut tomorrow; loonie may suffer. Oil tanks as bearish factors multiply