• Japanese shares fell on Wednesday as worries that a tariff war between China and the United States could escalate weighed on sentiment, while concerns that tourists will shop less due to a typhoon flooding a major airport hit shares in cosmetic makers.

Japan’s Nikkei share average dropped 0.51 percent to 22,581, dropped for a fourth consecutive session following its eight-day winning streak while the broader Topix fell 0.77 percent to 1,705.

• China’s main stock indexes fell over 1 percent on Wednesday, as investors dumped banking, property and resources shares amid fresh signs of anaemic growth, and ahead of a likely escalation of the Sino-U.S. trade war.

The blue-chip CSI300 index fell 2.0 percent, to 3,298.14, while the Shanghai Composite Index lost 1.7 percent to 2,704.34 points.

• European stocks were lower Wednesday morning, as renewed concerns over international trade conflicts hampered investors' appetite for riskier assets.

The pan-European Stoxx 600 was down around 0.4 percent during early morning deals, with all sectors and major bourses in negative territory.

• Market focus is largely attuned to global trade developments, with discussions between Canada and the U.S. expected to resume Wednesday. Both countries are looking to find common ground to revamp the North American Free Trade Agreement (NAFTA) after the last round of talks ended without a deal.

• A rise in populism for the embattled nation of Italy won't be enough to unsettle investors this year, with analysts at Citi predicting markets in Milan to finish off 2018 on a strong note.

The main Italian index — the FTSE MIB — is down by almost 7 percent since the start of the year despite being a top pick for many investors back in January. Investors have taken a cautious approach following fears that the new populist government will increase public spending when the country is already mired in large amounts of public debt. The government — a coalition between the leftist Five Star Movement and the right-wing

"Then the worsening of the political situation caused a substantial correction that cancelled all the gains," the bank said. Citi didn't give a predicted figure for a year-end rally but noted previous turbulence in 2016 where the FTSEMIB fell 29 percent before rallying and closing the year up 27 percent.

• Based on yesterday’s close at 2898.25 and the early price action, the direction of the September E-mini S&P 500 Index on Wednesday is likely to be determined by trader reaction to the pivot at 2901.50.