[R]1:00PM NY, 5:00 PM Frankfurt European stocks closed in the negative but off earlier lows.[/R]

European stock markets closed in the negative after moving off earlier lows. Global markets were weak on Wednesday, as investors reacted to sharp declines in Shanghai, sparked by tripling of taxes on stock trades.

Among the most notable decliners, British Energy dropped 3.7%. Shares of pharmaceutical maker GlaxoSmithKline recovered in the afternoon to close down 0.54%. In France, shares in manufacturer Vallourec decreased 2.5%. On the positive side, the British software company LogicaCMG rose 3.4% amid reports that private equity firm Permira may be considering a takeover bid.

The euro lost 0.2% against the dollar, buying $1.3419 on data showing consumer confidence in May. The U.K.’s FTSE 100 closed down 4.40 points, or 0.7%, at 6,602.10 points. The French CAC 40 fell 14.24 points, or 0.2%, at 6,042.15 points, while Germany’s DAX closed 16.07 points, or 0.21%, lower at 7,764.97 points.

[R]11:30AM Market averages turned narrowly mixed.[/R]

U.S. market averages recovered from earlier weakness to trade mixed. Investors shrugged off a heavy sell-off in China, sparked by a tripling of taxes on stock trades. The Dow traded lower, pressured by Merck & Co. (MRK: chart), down 2%, Intel (INTC: chart), down 1.5%, and Pfizer (PFE: chart), falling 1%. Caterpillar (CAT: chart) helped limit losses, posting a gain of 2.9% after rival Joy Global issued an upbeat guidance. In the tech sector, IBM (IBM: chart) advanced 0.6% and Microsoft (MSFT: chart) added 0.3%.

By sector, metals miners traded mixed. Eldorado Gold Corp (EGO: chart) lost 1.8%, while Freeport McMoRan Copper and Gold (FCX: chart) advanced 2%.Oil services, real estate investment trusts and financials moved to the upside, while semiconductors, telecoms and transportation stocks declined. Energy stocks benefited from an increase by the price of oil. Crude for July delivery added 35 cents to $63.50 a barrel on bargain hunting. Among semiconductor stocks, Marvell Technology (MRVL: chart) dropped 2.5% and Teradyne (TER: chart) lost 1.7% .

Among the most notable gainers, Coldwater Creek (CWTR: chart), women''s apparel and accessories retailer, climbed 15.7% on better-than-expected Q1 earnings. At midday, the Dow Jones industrial average was down 3.17, or 0.02%, at 13,518.17, after falling about 60 points after the open. The Standard & Poor''s 500 index rose 0.28, or 0.02%, to 1,518.39, and the Nasdaq composite index dropped 2.46, or 0.10%, to 2,569.60. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.86% from 4.88% late Tuesday.


[R]9:45AM U.S. stocks opened notably down amid Chinese weakness and ahead of Fed’s minutes.[/R]

Wall Street saw a weak opening on Wednesday, pressured by steep declines in the Chinese stock market sparked by a tripling of taxes on stock trades. Investors were also awaiting the Fed Reserve''s minutes, expected to indicate a rate cut in the near term, rather than a rate hike. In corporate news, ESpeed Inc. (ESPD: chart), a publicly owned electronic trading house, said it is buying BGC Partners in a $1.3 billion deal. Shares of ESpeed added 1.6%.

On the earnings news front, women''s clothing and accessories retailer Coldwater Creek (CTWR: chart) climbed 14% after reporting 4% increase in Q1 profit, lifted by strong demand for spring clothing. Coldwater Creek earned $12 million, or 13 cents per share, compared with $11.6 million, or 12 cents per share a year ago, beating estimates of 8 cents a share. Revenue surged 31% to $281.3 million. Bookseller Borders Group dropped 4.3% after it reported a wider Q1 loss, citing weaker sales.

AT&T (T: chart) led the telecom sector higher, posting a gain of 0.7%. At the same time, Qualcomm (QCOM: chart) fell 2% and Alcatel-Lucent (ALU: chart) dropped 1.4% as shares of most equipment vendors moved lower. In the first hour of trading, the Dow Jones industrial average fell 38.93, or 0.29%, to 13,482.41. The Standard & Poor''s 500 index was down 4.06, or 0.27%, at 1,514.05, and the Nasdaq composite index dropped 12.30, or 0.48%, to 2,559.76. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.85% from 4.88% late Tuesday.


[R]9:30AM FTSE 100 trades lower in mid-day trading Wednesday on concerns relating to China.[/R]

In London, in mid-day trading, the benchmark index FTSE 100 was down by 1% at 6,543.8.

Advancers

There are very few advancers in mid-day trading on Wednesday. Shares in the tobacco sector and real estate are in demand. Imperial Tobacco advanced 1.8%, Land Securities is up 1.6% and British Land is 0.9% higher.

Decliners

Stocks trading without the latest dividend rights lead the decliners. Resolution fell 3.1%, while Associated British Foods gave up 1.6% and Marks & Spencer was down 1.4%.