German stocks traded higher on Wednesday as investors cheered mostly positive earnings results and awaited key U.S. CPI data later in the day for additional clues on the Fed's rate trajectory.

Asian stocks ended mixed on Wednesday, with Hong Kong and South Korean markets closed for Buddha's birthday.

The U.S. dollar weakened against other major currencies in the Asian session on Wednesday, as traders await the release of key U.S. CPI data along with other reports on U.S. retail sales and homebuilder confidence which is likely to influence the U.S. Federal Reserve's near-term policy path.

China's central bank left its medium-term lending facility rate unchanged on Wednesday as policymakers focus more on the currency stabilization. The People's Bank of China conducted the CNY 125 billion of one-year MLF facility. The rate on the MLF was retained at 2.5 percent. The MLF usually acts as a guide to the loan prime rate fixing.

Flash GDP estimate from the euro area is the top economic news due on Wednesday, headlining a light day for the European economic news. At 2.45 am ET, France's statistical office INSEE is set to publish final inflation figures for April. Consumer price inflation is seen at 2.2 percent, unchanged from the flash estimate.

Expert market comment made by senior analyst Alex Kuptsikevich of the FxPro Analyst Team: Matured altcoins are losing strength

With gold reaching near-record highs and witnessing a surge in demand for gold ETFs worldwide, it has become a focal point. However, amidst this bullish momentum, year-to-date net outflows of $5.4 billion suggest a nuanced market sentiment, indicating that some investors are taking advantage of the elevated prices.

The BoJ and MoF appear to be at odds regarding further policy rate hikes. While the MoF sought the BoJ's exit from the negative interest rate policy to advance its goal of implementing a stringent fiscal policy, the prospect of additional rate hikes poses challenges for the government.

The benchmark US 10-Year Treasury yield tumbled to 4.44% from 4.50% yesterday following a downward revision in US March Producer Prices. While April’s US PPI rose 0.5%, March’s PPI was revised down to -0.1% from 0.2% previously.

gold prices rebounded strongly on the back of the softening U.S. dollar, while oil prices remained steady.