Banking hogged the limelight after Bear Stearns reassessed their ratings in the U.K. banking sector. Bear Stearns downgraded Barclays to peer perform from outperfom, on the company proposed combination with ABN Amro and also downgraded mortgage bank Northern Rock to peer perform from outperform.

Oil and gold

Crude oil dipped because some traders expected Iran and the U.K. to reach a compromise over 15 captive British sailors and marines. Crude oil for May delivery shed 76 cents, or 1.2%, to $63.88 a barrel in after-hours electronic trading on the New York Mercantile Exchange. Brent crude for May settlement fell 69 cents, or 1%, to $67.12 a barrel in electronic trading on the ICE Futures exchange.

Gold rose as declines in the dollar may increase investor demand for the precious metal. Gold for immediate delivery advanced $1.95, or 0.3%, to $665.90 an ounce in early trade in London. Silver climbed 6 cents to $13.46 an ounce, platinum gained $2.50 to $1,243.50 and palladium advanced 50 cents to $352.50.

Currencies

The dollar was lower against most other major currencies in European trading Wednesday. The euro traded at $1.3351, up from $1.3331 late Tuesday. The British pound traded at $1.9748, up from $1.9746. The dollar fetched 118.83 Japanese yen, down from 118.88.