In Asian Equity Markets Japan’s Nikkei share average ended lower on Thursday, pulling back from a new 26-year high as investors turned cautious, while real estate stocks and financial firms under-performed. The Nikkei fell 0.4 percent to 23,763.37, after hitting 24,084.42 in early trade, the highest since November 1991. Mitsubishi Estate declined 1.6 percent and Sumitomo Realty & Development fell 1.0 percent. Insurers and banking stocks lost ground, with Dai-ichi Life Holdings and T&D Holdings both declining 1.3 percent, while Mitsubishi UFJ Financial Group shed 0.9 percent and Mizuho Financial Group fell 1.8 percent. On the other hand, chip making equipment manufacturers jumped, with Advantest jumping 3.1 percent and Tokyo Electron was up 2.8 percent after the Philadelphia SE Semiconductor Index rose.

In Currency Markets the euro nursed losses on Thursday, having retreated from a three-year high after comments from European Central Bank officials this week hinted at concerns over the currency’s recent strength. The euro’s pull-back from highs helped stabilize the greenback, which has come under pressure as central banks of other major economies begin to move toward tighter monetary policy amid a more synchronized global recovery. The euro last stood at $1.2194, up 0.1 percent on the day but well below a peak of $1.2323 set on Wednesday, the euro’s strongest level since December 2014. The Canadian dollar eased about 0.1 percent to C$1.2450, after the Bank of Canada raised interest rates on Wednesday and indicated confidence in the economic outlook but sounded a cautious tone on the future of the North American Free Trade Agreement

In Commodities Markets oil prices rose on Thursday on a reported decline in U.S. crude inventories, and as rebels in Nigeria threatened to attack the country’s petroleum infrastructure. However, prices stayed below recent three-year highs as fuel supplies remain ample and as refineries scaled back operations. Brent crude futures were at $69.56 up 0.3 percent, from their last close. On Monday, they hit their highest since December, 2014 at $70.37 a barrel. U.S. West Texas Intermediate (WTI) crude futures were at $64.25 a barrel up 0.4 percent, from their last settlement. WTI marked a December-2014 peak of $64.89 a barrel on Tuesday. Gold was down 0.1 percent at $1,327.60 an ounce, with the dollar’s bounce pulling it back from a four-month high of $1,344.43 set on Monday.

In US Equity Markets stocks jumped on Wednesday and the Dow closed above 26,000 for the first time as investors’ expectations for higher earnings lifted stocks across sectors. The Dow also hit an all-time high in intra-day trading. Boeing jumped 4.7 percent after the company announced a joint venture with car seating leader Adient to make aircraft seats. The S&P 500 gained 0.94 percent, to 2,802.56 and the Nasdaq Composite added 1.03 percent, to 7,298.28. Banks fluctuated as Goldman Sachs and Bank of America reported disappointing results. The S&P 500 banks sub-sector fell in earlier intra-day trading but ended Wednesday up 0.6 percent. Ford fall over 7.0 percent after the automaker reported full-year profit below estimates and provided a downbeat forecast.

In Bond Markets the U.S. yield curve flattened to a decade-low spread between 5-year and 30-year yields and two-year Treasury yields hit a nine-year high on Wednesday on expectations the Federal Reserve will continue to tighten monetary policy this year. Two-year yields, most sensitive to Fed interest rate hikes, have been rising as robust economic data has affirmed the FOMC’s hawkish sentiment. Two-year yields were 2.039 percent, after hitting 2.047 percent earlier in the day, its highest since September 2008 while 10-year Treasury yields were 2.556 percent.Japanese government bond prices fell on Thursday, with the benchmark 10-year yield briefly hitting a six-month high, before reversing early losses to end flat on bargain-hunting. The 10-year yield rose to as high as 0.090 percent , its highest since July 12, before stepping back to 0.080 percent.

Today’s inflection points

• 09:15 GMT+1 EUR ECB’s Weidmann speaks in Frankfurt
• 09:15 GMT+1 EUR ECB’s Coeure speaks in Frankfurt
• 14:30 GMT+1 USD Building permits
• 14:30 GMT+1 USD Philly Fed index
• 14:30 GMT+1 USD Initial jobless claims
• 15:30 GMT+1 EUR ECB’s Coeure speaks in Frankfurt
• 17:00 GMT+1 USD DOE U.S. crude oil inventories