U.S. STOCKS

U.S. stocks traded around the flatline after the Federal Reserve reiterated its concerns about the U.S. economy and pledged to stick to its bond-buying policy.

The Dow Jones Industrial Average rose nine points, or 0.1%, to 13111 in Wednesday afternoon trading, in a day that saw stocks trade in a relatively narrow range.

The Standard & Poor's 500-stock index gained one point, or 0.1%, to 1414 and the Nasdaq Composite advanced less than one point, or less than 0.1%, to 2991.

Bullish investors are looking to bounce back after the Dow suffered its biggest one-day drop since June 21. In the past three days, the Dow has lost 3.3%.

The Fed's policy-setting rate, after a regularly scheduled meeting, said it would keep its exceptionally low interest rates through mid-2015 and that it would continue buying $40 billion in mortgage-backed securities each month in line with its September statement.

The central bank reiterated that it saw significant downside risks to the economy. Investors reacted by pushing stocks briefly into negative territory, though the Dow recouped its decline in a matter of minutes.

Leading the day's advancers were health care and materials stocks, as United Technologies, Procter & Gamble and J.P. Morgan Chase led the way. Technology and industrial stocks continued to weigh on the market, sustaining a trend that has been prominent throughout the earnings season.

Cisco Systems fell 3.1% to weigh most heavily on the Dow components, after rival Juniper Networks' chief executive warned of more demand challenges ahead. Juniper lost 7.8%.

EUROPEAN STOCKS

Encouraging Chinese and U.S. purchasing managers' index readings helped send European stock markets higher Wednesday, although downbeat euro-zone indicators kept gains in check.

The Stoxx Europe 600 index rose 0.4% to close at 269.52. Software maker SAP posted one of Wednesday's biggest gains, closing up 4.2% after delivering a 16% increase in revenue for the third quarter.

In the other direction, shares of Volvo AB dropped 1.9%, trimming earlier losses. Third-quarter earnings per share for the Swedish truck, bus and construction-equipment maker fell 64%. Heineken NV fell 1.7%, as the company said it, like rival brewers, has been suffering from weak European demand.

Manufacturing data from all corners of the world provided the catalyst for Wednesday's European trading tone. The Markit preliminary composite purchasing-managers' index, or PMI, for the euro zone fell to a 40-month low of 45.8 in October, down from 46.1 in September.

Meanwhile, the German manufacturing PMI fell to a two-month low, while the Ifo index tracking the business climate in the largest European economy proved weaker than expected.

Data out of China and the U.S., however, were more encouraging. Energy shares ranked among the European gainers in the midweek session, with Royal Dutch Shell PLC rising 0.8% in London and Total SA adding 0.6% in Paris.

London's FTSE 100 index gained 0.1% to 5,804.78, with shares of Barclays PLC losing 1.2%. However, consumer-goods firm Reckitt Benckiser Group PLC jumped 3.7%, after it said it's on track to meet 2012 financial targets.

In Paris, the CAC 40 index added 0.6% to 3,426.49. Shares of STMicroelectronics NV rose 3.7%, gaining after the chip maker late Tuesday said it sees improved revenue and gross margins in the second half of 2012.

However, Peugeot SA sank 4.6% as the car maker's board agreed to suspend dividends and share buybacks. And in Frankfurt, the DAX 30 index added 0.3% to 7,192.85, supported by a 3.1% advance for Volkswagen AG, which said it expects sales for 2012 to exceed the prior-year figure.

ASIA-PACIFIC STOCKS

Asia stocks traded mostly weaker Wednesday, while Hong Kong and Shanghai gained after preliminary data showed Chinese manufacturing activity recovering in October.

Japan's Nikkei Stock Average fell 0.7%, while South Korea's Kospi declined 0.7%. Hong Kong's Hang Seng Index climbed 0.3%, to end at its highest closing level in 14 months as the market returned from a one-day holiday.

The Shanghai Composite Index recovered from initial weakness to trade up 0.1%. Markets drew support from the preliminary reading of HSBC's China manufacturing Purchasing Managers' Index for October, which printed at a three-month high, but just below expansionary levels.

The preliminary or "flash" version of the PMI rose to 49.1, up from September's final reading of 47.9, the bank said Wednesday. Tokyo saw losses for commodity-linked firms, with JX Holdings Inc. down 0.5% and Inpex Corp. down 2.1%.

In Seoul, SK Innovation Co. fell 2.5%. Hong Kong resource-sector firms also saw selling pressure, with CNOOC Ltd. down 1.7%, Aluminum Corp. of China down 1.1%, and PetroChina Co. down 2.4%.

Elsewhere in Hong Kong, apparel retailer Esprit Holdings Ltd. tumbled 9.5% after announcing a heavily discounted rights issue late Monday.

Asian companies are in the early stages of releasing their earnings reports. Tokyo-listed Kawasaki Heavy Industries Ltd. dropped 5.7% after it cut its first-half net-profit view to 12.4 billion yen ($155 million) from an earlier forecast of Y14 billion late Tuesday.

Other heavy industrial firms also fell in Japan, with Komatsu Ltd. down 2.5% and Mitsui Engineering & Shipbuilding Co. down 3.1%.

South Korean steel giant Posco declined 1.4% to extend losses made in the previous session. The firm stated late Tuesday that its third-quarter operating profit fell 18% and is expected to fall further in the fourth quarter. It wasn't all bad news on the earnings front.

Chip maker SK Hynix Inc. rallied 4.1% in Seoul after the firm reported it swung to a profit and was seeing strong demand for mobile memory chips. Hong-Kong listed telecom China Mobile Ltd. climbed 2.2% as investors reacted to a third-quarter profit gain that represented a big improvement from its second-quarter results.

COMMODITIES

Base metals on the London Metal Exchange closed little changed in a mixture of positive and negative territory, as conflicting data cues and persistent uncertainty regarding the outlook for global industrial demand led the complex to tread sideways.

At the close of open outcry trading, flagship base metal copper was down 0.2% on the day at $7,817 a metric ton. U.S. crude-oil futures dropped to a fresh three-month low as weak data on the global economy and a surge in U.S. oil stockpiles sent traders to the exits.

Light, sweet crude for December delivery fell 94c to $85.73/barrel on the New York Mercantile Exchange as the Energy Department said inventories rose 5.9 million barrels last week.

Gold futures weathered several minutes of volatile trading in the wake of the Federal Reserve's policy statement and pared earlier losses, though futures remain near seven-week lows.

Gold prices jumped $7 to $1,709.00 an ounce from $1,702.40 in the minute of trading that the FOMC minutes were released. But prices touched $1,698.70 just two minutes later, as traders continued to sift through the policy statement.

The most actively traded contract, for December delivery, had closed floor trading $7.80, or 0.5%, lower at $1,701.60 a troy ounce on the Comex division of the New York Mercantile Exchange. This was the lowest settlement price since gold futures ended at $1,694.00 on Sept. 5. Compiled from MORRISON SECURITIES PTY. LTD.