Despite a positive report on German business sentiment, concerns about the US economy and banking sector troubles weighed on investor confidence on Wednesday. The dollar and stocks remained under pressure, but a weaker dollar led to increased interest in commodities such as oil, gold, and industrial metals. Deutsche Bank's warning about potential credit market issues affecting profits in 2008, along with a drop in US consumer confidence and disappointing data on new orders for US manufactured goods, kept investors cautious. Wall Street was expected to open lower with major stock index futures trading in the negative. Sean Maloney, a fixed-income strategist at Nomura in London, stated that there is still anxiety in the banking sector, and Deutsche Bank's announcement serves as a reminder that JPMorgan's increased bid for Bear Stearns may not solve all the financial sector's problems. The news earlier in the week that JPMorgan had raised its takeover offer for Bear Stearns by fivefold had led to a rally in financial stocks worldwide and alleviated concerns about a sector impacted by a credit crunch. The FTSEurofirst 300 index of top European shares dropped by 0.9 percent, while Germany's DAX fell by 0.7 percent, with Deutsche Bank down by about 2 percent. London's FTSE 100 index also fell by 0.7 percent, largely due to a nearly 7 percent decline in Swiss miner Xtrata following the breakdown of takeover discussions with Vale, the world's largest iron ore miner. In Asia, Japan's Nikkei closed down by 0.3 percent, but MSCI's index of other Asian stock markets rose by 0.7 percent. MSCI's primary global stock index inched up by 0.2 percent. The dollar decreased in value against other major currencies, leading to a 0.8 percent drop in the dollar index due to concerns about the US economy. On the other hand, positive results from the German business climate index, which rose to 104.8 from 104.1, based on a survey of approximately 7,000 companies, boosted the euro. The euro increased by 0.7 percent to $1.5736 for the day, supported further by remarks from European Central Bank President Jean-Claude Trichet, which were seen as suggesting no immediate interest rate cuts. Trichet stated during his testimony to the economic committee of the European Parliament that the ECB believed the current monetary policy would help maintain price stability in the medium term. US light crude for May delivery increased by $1.25 to $102.47, gold also saw a rise to $947.70 per ounce from its previous level of around $934.60 per ounce in New York on Tuesday. Copper for three-month delivery on the London Metal Exchange was last traded at $8,155 per tonne, showing a 0.8 percent increase. Despite a negative outlook in the US, global demand for various commodities is expected to remain strong, particularly due to the growth in economies like China. The weakening dollar has led to increased buying, however, traders are hesitant to take on large positions as the quarter comes to a close. Concerns about the US economy have also resulted in a rise in demand for safe-haven U.S. Treasuries, causing the benchmark 10-year yield to decrease by about 5 basis points to 3.457 percent. German 10-year bonds did not perform as well as US bonds due to Trichet's remarks and new bond issuance. The 10-year yield remained relatively stable at 3.887 percent.