ASIA'S DAY: Japan's benchmark Nikkei 225 gained 0.9 percent and Hong Kong's Hang Seng rose 1.2 percent.

However, the chief driver for the market malaise was a Bloomberg report on Tuesday that the European Central Bank would probably wind down its 80 billion euro ($90 billion) monthly bond purchases before ending its quantitative easing program. Or that banks face market-to-market losses on their bond holdings.

ENERGY: Oil prices eased after rising to their highest in three months. It was last at 1.6725 on Wednesday. Benchmark Brent crude LCO c1 gained 1.4 percent to $51.59 a barrel on a report that USA inventories dropped for a fifth week in a low. Markets were rattled by the prospect of the region's central bank eventually winding down its bond-buying stimulus. But those stocks become less attractive if interest rates and bond yields climb.

Federal Realty Investment trust lost 5.85 dollars, or almost 4%, to 148.08 dollars, one of the biggest declines in the S&P; 500.

The Nasdaq is down 22.35 points, or 0.4 percent. The IMF upgraded its forecast for Japanese growth to 0.5 percent this year and for the 19 countries that use the euro currency to 1.7 percent.

Sterling remained near its 31-year low on concerns about Britain's exit from the European Union, following losses of nearly 2 percent over the past two days after British Prime Minister Theresa May said on Tuesday the country's separation from the EU will not be "plain sailing". Strong jobs numbers might encourage the Federal Reserve to raise interest rates this year.

Richmond Fed President Jeffrey Lacker argued that borrowing costs might need to rise significantly to keep inflation under control. Higher rates, however, will pinch demand for auto and home loans. It was last trading down 0.1 percent at 102.78.

Other markets: Oil futures US:CLV6 traded higher, while European stocks SXXP, -0.88% lost ground, after Asian markets closed mixed.

US stock futures on Wednesday showed little changed, as traders avoided big bets ahead of an employment reading that could offer clues about a more closely watched jobs report due Friday.

The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 7.6- million-barrel decrease in crude supplies, a 2.9-million-barrel increase in gasoline stocks and a 1.3-million-barrel decline in distillate inventories, according to a market participant.

Duterte tells Obama 'you can go to hell' in new tirade
Last month, he called the president a "son of a bitch" during a news conference ahead of Obama's planned visit to the Philippines. His foreign secretary later said the decision was not final, sparking questions as to whether other annual U.S. "Mr.