In European Equity Markets the pan-European Stoxx 600 edged down almost half a percent, with most sectors and major bourses in negative territory. Europe’s banking sector was among the worst performers, falling 1.75 percent amid reports of suspected wrongdoing. Sweden’s financial authority said Thursday that allegations made in a media report linking Swedbank to a regional money laundering scandal were “very serious.” Shares of Swedbank and Dankse Bank fell more than 9 percent and 4 percent respectively on the news.
In Currency Markets the U.S. dollar fell against most major currencies on Thursday, hurt by weaker-than-expected U.S. economic data that affirmed expectations the Federal Reserve will hold interest rates this year. The greenback so far this week has fallen 0.4 percent, after gaining more than 1 percent the previous week, highlighting an uneven performance amid a mixed batch of U.S. economic reports. The U.S. dollar fell 0.2 percent against the yen to 110.63 yen. The euro also inched higher versus the dollar, up 0.1 percent at $1.1343.
In Commodities Markets oil prices eased off 2019 highs on Thursday ahead of U.S. government data that was expected to show a fifth weekly build in crude inventories, while concerns about slowing global economic growth weighed. Losses were capped by OPEC-led supply cuts and U.S. sanctions on Venezuela and Iran. U.S. West Texas Intermediate (WTI) crude oil futures fell 17 cents to $56.99 a barrel after touching a 2019 high of $57.55 the previous day. Brent crude futures rose 1 cent to $67.09 after touching a 2019 peak on Wednesday at $67.38.
In US Equity Markets stocks fell on Thursday, pressured by weak economic data and a drop in healthcare shares led by Johnson & Johnson, with investors keeping a close watch on U.S.-China trade talks. The S&P 500 was down 0.38 percent, at 2,774.19 and the Nasdaq Composite fell 0.55 percent, at 7,448.12. Biogen Inc shares fell 3.2 percent after brokerage Stifel downgraded the stock to “hold” from “buy”. The Nasdaq Biotech index was down 1.17 percent. Nike Inc shares dropped 1.0 percent, weighing the most on the consumer discretionary sector, which slipped 0.35 percent.
In Bond Markets Euro zone government bond yields rose after surveys showed business activity was surprisingly firm in February, particularly in France, and on news that British lawmakers could vote on a new Brexit deal as soon as next week. Euro zone government bond yields, which have compressed partly because of concerns around what effect a no-deal Brexit would have on the European economy, rose 2-4 basis points across the board. Germany’s 10-year government bond, the benchmark for the region, was up 3 bps to a one-week high of 0.135 percent.