Dow and FTSE lifted to all-time peaks

Wednesday closed sending main benchmark index at both

shores of the Atlantic peaking at historic heights, with the Dow Jones Industrial Average rising 42.47 points to end at 14,296.24, and the British FTSE Stocks ended higher Wednesday, with the Dow extending its gains to post a record high for the second-straight day, amid signs of improvement in the labour market.

JCPenney slipped after Citi and Openheimer downgraded the retailer to "neutral" from "buy and to "perform" from "outperform," respectively. Main investors groups at the ailing fashion chain are gathering to prose structural changes that help lift the company’s performance.

In corporate news, American Eagle Outfitters posted a higher quarterly profit, but shares tumbled after the teen apparel retailer handed in a disappointing current-quarter sales forecast, citing a tough economy, reported the CNBC.

Meanwhile, some analysts warned that the rally may be the beginning of a bubble. U.S. shares are up almost 7 percent since the start of the year, European markets have gained about 5 percent, while in Asia, Japanese shares have soared almost 13 percent.

"I think stocks could very well rally through the rest of this year, even into 2014 based on this wave of money, but at some point it will pop and collapse, and that's what investors need to bear in mind," Jim Rickards of Tangent Capital, told CNBC Asia's 'Squawk Box'.

American Apparel, Inc. announced Wednesday that it currently intends, subject to market and other conditions, to offer senior secured notes in a private offering. These notes, if offered, will be offered only to “qualified institutional buyers” in the United States in accordance with Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons pursuant to Regulation S under the Securities Act. The company intends to use the net proceeds of any such offering of the Notes to repay certain indebtedness and for general corporate purposes. The company may at any time elect to no longer pursue a possible Notes offering.

In the UK, Mulberry´s shares jumped on the trading roller coaster amid rumours of a potential takeover bid from Hermès International. Mulberry gained 6.8 percent on Tuesday and the ‘Daily Mail’ reported that "rumours were rife" that Hermès could be lining up a 1.5 billion pound, 25 pounds per share cash bid for the company.

However, hours later, the management at the French fashion house stresses yet again that it is focused on growing its business organically and it is not looking to diversify through an acquisition.

"Hermes denies having had any contact with or planning to acquire the company Mulberry," Hermes Deputy Managing Director Patrick Albaladejo told Reuters. Prior to Hermès denial, Mulberry shares were up 8.5 percent to stay flat after midday at 1,300 pence. When Hermes has pursued takeovers, they have tended to target existing suppliers or craftsmen with which it would like to work, reported Bloomberg.