In Asian Equity Markets shares traded mixed on Thursday morning as semiconductor stocks in Japan and South Korea gained. Mainland Chinese stocks fell slightly in early trade. Over in Hong Kong, the Hang Seng index gained 0.16%. The Nikkei 225 in Japan rose 0.37%, with shares of index heavyweight Softbank Group advancing more than 2%. Australia’s S&P/ASX 200 traded 0.39% higher as the sectors mostly advanced. In South Korea, the Kospi fell 0.65% as shares of LG Chem fell more than 4.5%.
In Currency Markets the euro was mired near a two-month low on Thursday ahead of a European Central Bank meeting that could signal monetary easing as growth in the currency zone falters. Sentiment toward the single currency took a blow after data showed Germany’s manufacturing sector contracted at the fastest pace in seven years while French business growth unexpectedly slowed, sending European bond yields lower. The common currency traded at $1.11415 after touching $1.11270, its lowest since May 31.
In Commodities Markets oil ticked higher early on Thursday after falling in the previous session as more signs of slowing global growth added to demand concerns, with Middle East tensions underpinning prices. Brent crude futures were up 6 cents at $63.24 a barrel, after falling 1% overnight, falling for the first time in four sessions. U.S. WTI crude were 12 cents, or 0.2%, higher at $55.99 a barrel, having declined 1.6% in the previous session. Sentiment in the oil market has darkened as investors worry that slowing global economic growth will weaken demand for oil.
In US Equity Markets the S&P 500 and Nasdaq hit record highs on Wednesday after reassuring comments from Texas Instruments about global chip demand blunted the impact of weak earnings reports from Boeing and Caterpillar. Texas Instruments Inc jumped 7.4% after the company hinted that a global slowdown in microchip demand would not be as long as feared, powering the Philadelphia chip index up 3.1% to a record high. The S&P 500 gained 0.47% to 3,019.56. The Nasdaq Composite added 0.85% to 8,321.50. The S&P 500 and Nasdaq each closed at their highest levels ever.
In Bond Markets U.S. Treasuries yields fell on Wednesday in line with European government debt, after weak economic data in the region added to expectations that the European Central Bank will signal easier monetary policy. Benchmark 10-year Treasury yields gained 6/32 in price to yield 2.053%, down from 2.074% on Tuesday. U.S. data on Wednesday also showed weakness in the manufacturing sector, with activity slowing to a near 10-year low in early July.