The US ADP employment report was in line with forecasts with employers adding 201,000 private sector jobs in March. However the February result was revised lower from a gain of 217,000 to 208,000. The median forecast for the non-farm payrolls figures released on Friday suggest jobs growth in the vicinity of 190,000, with the unemployment rate remaining at 8.9pct.

According to the Italian news agency ANSA, the IMF has left its 2011 world GDP growth forecast at 4.4pct. Across the globe, Japanese growth forecasts have been lowered from 1.6pct to 1.4pct in 2011, while US GDP was upped from 2.8pct to 3.0pct. China´s growth estimates were unchanged at 9.6pct.

European shares rose to three-week closing highs on Wednesday. Mining shares were among the big gainers, supported by improving confidence in the global economy recovery. The STOXX Europe 600 basic resources index added 0.8pct. The FTSEurofirst index rose 0.8pct, the German Dax gained 1.8pct and the UK FTSE rose 0.3pct.

US sharemarkets rallied on Wednesday, driven by end-quarter rebalancing. The upbeat ADP private employment report also added to the positive sentiment. The S&P 500 broke through a key resistance level of 1330, but was unable to hold above this level at the close. The Dow Jones index rose by 72pts or 0.6pct with the S&P 500 was higher by 0.7pct and the Nasdaq gained 20pts or 0.7pct.

US treasuries rallied (yields lower) on Wednesday. The recent slide in treasury prices and the higher yields on offer gave traders an opportunity to bargain hunt. US 2yr yields fell 4pts to 0.80pct and US 10yr yields lost 5pts to 3.44pct.

The greenback fell against the Euro as markets focused on the increasing likelihood of a euro zone rate hike next month. The Euro rose from lows near US$1.4050 to highs around US$1.4130 and closed US trade near US$1.4120. The Aussie dollar rose from early lows near US102.90c to US103.35c, ending US trade near US103.30c. And the Japanese yen traded in a tight range between 83.20 yen per US dollar to JPY82.75, ending US trade near JPY82.85.

US crude oil prices eased in a volatile and thin trading session on Wednesday. The EIA weekly inventory data showed a 2.95 million barrel build in crude stockpiles well ahead of estimates. The Nymex crude oil contract fell US52c or 0.5pct to US$104.27 a barrel. And the London Brent crude lost US3c to US$115.13 a barrel.

Base metal prices were sharply lower on the London Metal Exchange. Copper lost 2.1pct on concerns about lack of Chinese demand. And the gold price gained ground on the back of the US dollar weakness. The Comex gold futures price rose by US$7.40 or 0.5pct to US$1424.90.

Ahead: In Australia, retail sales and building approvals are released. In the US, factory orders are expected.

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