In European Equity Markets the pan-European Stoxx 600 closed 0.41% higher, led by a 2.2% gain for financial services stocks. Basic resources fell 3.2% on the back of a steep loss for Tenaris after the Luxembourg-based steel company missed second-quarter earnings expectations. Royal Dutch Shell’s second quarter profits fell to a 30-month low due to lower oil and natural gas prices and refining margins, falling far short of forecasts and leading the company’s shares 4.9% lower. Shares of Zalando jumped 13.3% after the German online retailer raised its profit guidance.
In Currency Markets sterling fell to a 30-month low on Thursday below $1.21, hurt by a stronger dollar, renewed worries about a no-deal Brexit and reduced Bank of England forecasts for British economic growth. The pound fell to a low of 1.2085, its weakest since January 2017. It came after the U.S. Federal Reserve’s less dovish than expected policy meeting on Wednesday spurred dollar buying, and before the BoE kept interest rates on hold but cut its growth forecasts amid mounting Brexit risks.
In Commodities Markets oil fell more than 2% on Thursday, declining for the first time in six days, after the U.S. Federal Reserve dampened hopes that a string of interest rate cuts would be in the offing and as record U.S. output helped keep the market well supplied. Brent crude, the international benchmark, fell $1.40, or 2.2%, to $63.65 a barrel, having fallen as low as $63.40 earlier in the session. U.S. West Texas Intermediate (WTI) crude was down $1.67, or 2.9%, at $56.91 after sinking to a low of $56.55.
In US Equity Markets stocks bounced back on Thursday, helped by technology shares as focus shifted to corporate earnings after a cautious message from the Federal Reserve on interest rates drove some of the biggest falls since May in the previous session. The S&P 500 gained 0.47%, to 2,994.49. The Nasdaq Composite added 0.88%, to 8,246.99. Kellogg Co jumped 9.52% after the company beat analysts’ expectations for quarterly sales and profit, driven by higher demand for its snacks, including Pringles and Pop-Tarts, in North America.
In Bond Markets core euro zone bond yields slid to a new record low on Thursday as another batch of weak economic data caused a rush into U.S. Treasury debt and underlined investor nerves about a slowing economy. The 10-year German bund yield touched a new record low of -0.466%, down 3 basis points on the day. The 30-year German bond yield was lower by more than 5 basis points to 0.069%, also a fresh record low. French and Dutch bond yields followed to their own new lows, yielding -0.206% and -0.349% respectively.