But the blue-chip Dow Jones industrial average dropped 50.71 points, or 0.50 percent, to end at 10,041.48. The Standard & Poor’s 500 Index fell 6.85 points, or 0.62 percent, to 1,091.06. The Nasdaq Composite Index shed 12.85 points, or 0.59 percent, to close at 2,163.47. The FTSEurofirst index, is up 23 percent in 2009 and has surged 58 percent since hitting a record low in March. Across Europe, Britain’s FTSE 100 index, Germany’s DAX and France’s CAC 40 fell 0.5-0.7 percent. The benchmark Nikkei dipped 3.45 points to 10,333.39, after hitting a three-week closing high on Tuesday. The Topix was also unchanged at 913.70.

France has given its clearest indication to date that the surging euro is a threat to Europe’s fragile recovery.  Since March the currency has risen 15pc in trade-weighted terms. An administration official said, on Wednesday Barack Obama is expected to announce a series of initiatives aimed at boosting credit to small businesses. According to Pricewaterhouse-Coopers, the European financial services market is set for a wave of mergers and acquisitions (M&A) activity. US Federal Reserve Chairman Ben Bernanke warned last night, that Asia’s export-promotion policies and the US’s massive budget deficit could refuel global economic imbalances.

Due for release today there is Fed’s Plosser to Speak at Stanford on Monetary Policy, Westpac Leading Index, NZD Credit Card Spending, CHF Real Estate Index Family Homes, GBP Bank of England Minutes, GBP U.K. CBI Quarterly Industrial Trends Total Orders, USD Fed Releases Beige Book Economic Report, JPY Merchandise Trade Balance Total, USD Adjusted Merchandise Trade Balance.

By Greg Secker