Treasury yields edged up as orders for business equipment increased in January by the most in six months as the producer price index rose less than forecast in February. The dollar was last down 0.41 percent against the euro, at $1.133. The pound rose on hopes of a delayed Brexit, a move which investors said could increase May's chances of getting her deal with the European Union through parliament or lead to Brexit being called off altogether if a second referendum is held.
USA stocks advanced broadly with all 11 of the S&P 500's sectors rising, boosted by health care and energy, which also lifted shares in Europe.
The pound whipsawed amid the Brexit drama, rising overnight after Theresa May won a new deal to leave the EU.
US producer prices edged barely higher in February, in the smallest annual increase since June 2017, the latest sign of tame inflation that supports the Federal Reserve's "patient" approach to future interest rate hikes.
U.S. crude stocks fell last week as refineries hiked output, the U.S. Energy Information Administration said.
USD/JPY: The U.S. dollar dipped against the yen on Wednesday, as tepid U.S. economic data reinforced views the Federal Reserve would be patient on monetary policy.
Sterling was down 0.65 percent at $1.3254 after climbing to $1.3380 the previous day, its strongest since June 2018. The producer-price data "is further evidence that the Fed's more patient approach should provide support for risk assets, at least for now". The U.S. central bank's rate-setting committee will issue its next policy statement following its March 19-20 meeting. Against the Japanese yen, the greenback was stronger at 111.55.
MSCI's gauge of stocks across the globe gained 0.57 percent while the FTSEurofirst 300 index of leading European shares closed up 0.69 percent.
The British pound rose ahead of another vote in Parliament on a proposal that would rule out a "no deal" exit from the European Union.
Boeing gained in early trade for the first time since Sunday's crash of a 737 MAX 8 jet in Ethiopia, but the shares later retreated after first Canada and then the United States said they were grounding 737 MAX jets, following steps already taken by Europe and other nations.
On Wall Street, the Dow Jones Industrial Average rose 155.29 points, or 0.61 percent, to 25,709.95.
U.S. Treasury yields rose on Wednesday after falling the previous session, as risk appetite improved and equity markets stabilized, with a poor 30-year bond auction further lifting rates.
The dollar fell and 10-year Treasury yields turned negative after core inflation cooled.
Germany's 10-year yield increased one basis point to 0.06 percent. The U.S. dollar was down to 1.0032 Swiss francs from 1.0069 Swiss francs, and it decreased to 1.3303 Canadian dollars from 1.3362 Canadian dollars. An unexpectedly weak US inflation reading bolstered most shares on speculation the Fed can hold as the economy finds its footing.
Brent crude futures settled at $67.55 a barrel, up 88 cents, or 1.32 percent.
Gold hit almost a two-week high on Wednesday as lackluster US data reinforced views the Federal Reserve would be patient on monetary policy, with bullion's appeal also bolstered by uncertainty over a Brexit deal ahead of a key vote.
Gold climbed 0.7 percent to $1,311.06 an ounce, the highest in nearly two weeks.