Market extends previous risk aversion ahead of the European open on Wednesday with Brexit and the US-China Trade deal continues to be the key catalysts.

The International Monetary Fund on Wednesday lowered its 2019 growth forecasts for the Asian economy to 5% from 5.4% projection made in April adding to the risk-off mood.

The yen and dollar are leading gains as we move towards European trading, with risk currencies a little softer on the day. Overnight, equities pull back a little and US future are also a little softer alongside bond yields as we look to begin the session. The pound is also holding a tad weaker as the Brexit drama drags on with the ball now over to the EU's court to decide on an extension request.

Looking ahead, a quieter session as Brexit headlines are likely to meet a bit of a pause for now and markets will be more on edge ahead of key risk and central bank events over the next week or so.

In the NA session, US Housing Price Index comes at 13:00 GMT, EU’s Consumer Confidence numbers at 14:00 GMT and weekly Crude inventory numbers from the US Energy Information Administration at 14:30 GMT.

Oil prices are holding onto their gains after reports suggested OPEC is considering "deep cuts" to oil production in its upcoming meeting. WTI Crude Oil is hovering around $54. On the other hand, private inventory data has shown rising stockpiles, limiting the advance.

Gold prices traded higher on Wednesday as markets digested the latest Brexit news. Gold prices rose to $1,491.30 as of writing.