Erdogan urged all countries that do not recognize the State of Palestine to reconsider their position.

Copper eased from near-record highs as traders reevaluated the US rate outlook amid oil price swings and hawkish Fed comments. LME copper fell as much as 0.8% on Wednesday, snapping a six-day advance. Several Fed officials voiced concern about inflation—Richmond Fed's Barkin said inflation shocks may take time to fade and others signaled possible further tightening. A stronger dollar on rising bets of tighter Fed policy weighed on dollar-priced metals. Nickel slid 0.3%, giving back part of Tuesday's 1.9% gain after drought-related water shortages forced smelters at Indonesia's Morowali processing hub to cut nickel pig iron output.

Wall Street strategists say a popular US Treasury basis trade has dropped to its smallest scale in more than two years, reflecting fewer exploitable mispricings and reduced liquidity provision from hedge funds. The levered strategy, which arbitrages small futures–cash price gaps, has cooled as those spreads compressed, weakening an important source of Treasury demand. Morgan Stanley and Citigroup strategists say the trade is not disappearing but that momentum has waned as relative-value opportunities narrow; Citigroup’s head of US rates strategy Jason Williams said lower market dislocations and volatility have trimmed basis positions and could imply stronger-than-expected Treasury demand. Morgan Stanley estimates nominal notional of leveraged participation in Treasury basis trades fell from $1.26 trillion at the start of the year to about $900 billion.