U.S. wholesale inventories increased strongly in November, lifting the inventories-to-sales ratio to the highest level in nearly 2-1/2 years, as higher borrowing costs depressed sales.

The global economy will slow this year as high inflation keeps alive the risk of a recession, according to the latest assessment by the World Bank.

The dollar held its ground on Wednesday, in spite of downward pressure from lower bond yields and higher stocks, as traders waited on this week's U.S. consumer price data to see whether it will confirm that inflation is in retreat.

China's central bank ramped up a liquidity injection on Wednesday, offering fresh funds to the banking system for the first time this year to help meet seasonal cash demand before the long holidays.

Asian equities edged higher on Wednesday, while the dollar steadied as investors braced for U.S. inflation data that will influence the Federal Reserve's interest rate policy.

Oil prices fell on Wednesday after industry data pointed to a large weekly build in U.S. crude stockpiles, although losses were limited by the prospect of strong demand this year and as the dollar softened on expectations of slower interest rate hikes.