In European Equity Markets the pan-European Stoxx 600 closed down around 0.9 percent with almost every sector and major bourse in the red. Technology stocks were the worst-performers closing down 2.64 percent. In individual stock news, Daily Mail bounced up 6.2 percent to become the best performer across Europe’s bigger market. This after a ratings upgrade by Berenberg. H&M rose 1.9 percent on Thursday after announcing it would cut prices to help with unsold items. The Swedish retailer has struggled over the last two years.
In Currency Markets the U.S. dollar dipped against a basket of currencies on Thursday as upbeat German inflation data prompted some traders to buy the euro and data showing the U.S. economy slowed more than earlier estimated in the first quarter weighed on the greenback. Trade-related worries sent the yuan to a fresh seven-month low against the dollar. The Canadian dollar strengthened against the greenback, supported by a recent increase in oil prices and as investors added to bets for a Bank of Canada interest rate hike next month.
In Commodities Markets oil prices steadied on Thursday, with U.S. crude near a 3-1/2-year high, but supply remained tight with investors concerned by the prospect of a big fall in crude exports from Iran due to U.S. sanctions. U.S. light crude was down 5 cents at $72.71 per barrel, after hitting $73.06 on Wednesday, its highest since November 2014. Benchmark Brent was up 5 cents at $77.67. The United States this week demanded all countries halt imports of Iranian oil from November, a hardline position the Trump administration hopes will cut off funding to Tehran.
In US Equity Markets Amazon’s foray into the pharmacy space sent drug stocks sliding on Thursday, but gains in financial and technology stocks helped Wall Street keep its footing. Amazon.com said it would buy online pharmacy PillPack, sending shares of drug distributors and retailers falling. The S&P health sector dropped 0.61 percent, the most among the 11 S&P sectors, while Amazon gained 1.2 percent. The S&P 500 was up 0.08 percent, at 2,701.76 and the Nasdaq Composite rose 0.20 percent, at 7,460.13.
In Bond Markets Italy sold 6.5 billion euros of government debt on Thursday, batting away concerns that recent political ructions would hamper its ability to borrow money in bond markets. Italy’s 10-year bond yield was last down 3 bps at 2.80 percent. Germany’s 10-year bond yield edged lower to 0.31 percent, only a shade off recent one-month lows. Other euro zone government bond yields fell 1-4 bps as global trade tensions hit stock markets.