U.S. STOCKS, BONDS

Stocks ended Wednesday broadly lower after a rollercoaster day of trading, as investors sorted through mixed signals from the Federal Reserve on the outlook for monetary policy.

Stocks started the day moving higher in active trading, helped by initial comments from Fed Chairman Ben Bernanke, which traders interpreted as suggesting the Fed would continue on its current course of pumping money into the financial system.

However, the market reversed course as Mr. Bernanke hedged those comments by saying that Fed could decide to pull back on its easy money efforts in coming months.

The sell-off gained momentum in the afternoon when minutes from the bank's last policy meeting indicated some members were willing to start rolling back its bond-buying program as early as June, though the decision makers didn't near agreement on the matter.

By the end of the volatile session, the Dow Jones Industrial Average declined 80.41 points, or 0.5%, to 15307.17. Earlier in the day, it had gained nearly 155 points.

The Standard & Poor's 500-stock index shed 13.81 points, or 0.8%, to 1655.35. It reached 1687.18 at its highest level of the day. The Nasdaq Composite Index pulled back 38.82 points, or 1.1%, to 3463.30.

In corporate news, Saks rallied 13% after the New York Post reported that the fashion retailer hired Goldman Sachs to explore strategic business alternatives, including a possible sale of the company. Saks also reported first-quarter adjusted earnings that were in line with analysts' estimates on Tuesday.

EUROPEAN STOCKS, BONDS

European stock markets climbed to an almost five-year high Wednesday, after U.S. Federal Reserve Chairman Ben Bernanke calmed fears that the central bank will soon fade out its easing program.

The Stoxx Europe 600 index inched 0.2% higher to 310.59, closing at its highest since June 2008. The index traded in negative territory for most of the day, but was sent higher in late trade, after Bernanke warned that premature monetary tightening could strangle the economic recovery, easing worries that the central bank was close to ending its $85-billion-a-month bond-buying program.

The U.K.'s FTSE 100 index closed at its highest since December 1999, up 0.5% at 6,840.27, after the International Monetary Fund called for new growth measures and less austerity to help the country's economy.

Also in the U.K., minutes from the Bank of England's latest policy meeting showed the Monetary Policy Committee voted unanimously to keep interest rates unchanged at a record low 0.5%.

Additionally, three out of the nine members voted in favor of increasing the bank's asset purchases by 25 billion pounds ($38 billion) to a total of GBP400 billion.

Shares of Lloyds Banking Group PLC added 2.3% after it said it expects to meet its additional capital requirements without having to issue further equity or use contingent capital securities.

Germany's DAX 30 index gained 0.7% to close at an all-time high of 8,530.89, extending gains to a 12th straight day. Banks posted some of the biggest rises, with Commerzbank AG up 2.3% and Deutsche Bank AG 1.4% higher.

Shares of Metro AG jumped 10% after Morgan Stanley turned buyers of the shares for the first time in nearly a decade, saying risks are solidly skewed to the upside. France's CAC 40 index rose 0.4% to 4,051.11. Shares of Lagardere SCA added 3.4% after J.P. Morgan Cazenove lifted the stock to neutral from underweight.

ASIA-PACIFIC STOCKS, BONDS

Japanese stocks outperformed Asian markets Wednesday as the yen resumed its weakening trend and no surprises emerged from the Bank of Japan's policy meeting, while Hong Kong's morning session was cancelled due to heavy rain.

Japanese stocks welcomed the resumption of the yen's weakening trend, with the Nikkei Stock Average rising 1.2% to 15,573.77 after earlier hitting its highest level since December 27, 2007 at 15,564.90.

The Bank of Japan concluded its two-day policy board meeting and voted unanimously to keep its monetary policy unchanged.

The BOJ raised its assessment of the economy for a fifth consecutive month and said in a statement that the economy has "started picking up." Japan reported a larger-than-expected trade deficit for April--at Y879.9 billion, compared with economists' forecasts for a Y666.75 billion deficit.

Sony Corp. jumped 5.9% in Tokyo after a Nikkei report said the company is considering a proposal by a major shareholder, hedge fund Third Point, to spin off its movie and music business.

Sony said that the report was inaccurate. Hong Kong's Heng Seng Index fell 0.45% to 23261.08 as China power producers tumbled, while a solid debut by the city's second-biggest initial public offerer so far this year didn't boost sentiment.

Chinese independent power-producer are struggling because of a possible restriction on coal imports, UBS said in a note. China Resources Power fell 4.5%, while Huadian Power plunged 8.7% and Huaneng Power lost 8.3%.

Debutante China Galaxy Securities, which raised $1.07 billion via an initial public offering, closed up 6.0% at HK$5.62. Its IPO price was HK$5.30.

The Shanghai Composite Index in mainland China closed down 0.1% at 2302.40 with a sharp pullback in the ChiNext market, a Nasdaq-styled board for start-ups, hurting overall market sentiment.

Companies listed on the ChiNext market are usually those engaged in the making of high-tech goods and environment-friendly materials.

While they fare relatively poorer in terms of earnings, stocks of these companies have surged this year on hopes that they would benefit from China's shift of its economic base from investment to consumption.

Among big losers, Huayi Brothers Media fell 6.3% after a 10% gain in the previous three sessions, and Xiamen 35.Com Technology plunged 7.6% after a 12% rise over the same period. The next economic signpost for China will be the preliminary manufacturing data for May, which will come out on Thursday, providing an early indication of the health of Asia's largest economy.

COMMODITIES

Copper closed higher on the London Metal Exchange Wednesday, propped up by supply concerns after PT Freeport Indonesia's chief executive said the company still doesn't know when it will resume operations following a tunnel collapse at its massive Grasberg gold and copper mine.

Copper rose 2.2% to $7,533.75 a ton Wednesday, its highest level since April 12. At the PM kerb close, LME three-month copper was up 1.5% at $7,474 a ton.

Aluminum was 1.2% higher at $1,882.50 a ton. Crude futures dropped 2% Wednesday on a government report showing rising fuel supplies and signs that the Federal Reserve may be closer to winding down stimulus efforts.

U.S. gasoline stockpiles rose by three-million barrels last week, according to the Energy Department, surprising analysts who had forecast a 100,000-barrel decline, as fuel imports surged ahead of the Memorial Day weekend.

Light, sweet crude for July delivery settled $1.90 lower at $94.28 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange fell $1.31 to settle at $120.60 a barrel.

Gold futures extended their losses in electronic trading after minutes from the Federal Reserve's May policy-setting meeting showed board members weighed an early end to the central bank's bond-buying program. Gold settled Comex floor trading down 0.7% at $1,367.40 a troy ounce. The June contract was down $21.40, or 1.6%, at $1,356.20 in electronic trading.