In European Equity Markets the pan-European finished down 1.45 percent, with all major sectors posting sharp losses. Looking at bourses in the region, the FTSE 100 slipped 0.8 percent, while the French CAC 40 and German DAX extended losses, down 1.78 and 1.44 percent. The retail sector also hit fresh lows, falling to its lowest since October 2014 during the session. Inditex, Next and Dufry AGwere some of the sector’s worst performers, all closing down 3 percent each or more.

In Currency Markets the U.S. dollar fell to a one-month low on Thursday, after the Federal Reserve signaled fewer interest rate hikes over the next two years and expressed caution about the U.S. economic outlook, lessening the appeal of dollar-denominated assets. Investors also expressed concern that policymakers may be raising interest rates just as the U.S. economy faces a slowdown. The euro rose 0.6 percent to $1.1440 building on gains on Wednesday. Italy had struck a deal with the European Commission over its contested 2019 budget and some solid trade data this week.

In Commodities Markets oil prices fell about 3 percent on Thursday, hitting their lowest in more than a year on worries about oversupply and the outlook for energy demand as a U.S. interest rate rise knocked stock markets. Brent crude futures fell $1.53 to $55.71 a barrel, a 2.7 percent loss. U.S. West Texas Intermediate (WTI) crude futures fell $1.55 to $46.62 a barrel, a 3.2 percent loss. Brent earlier hit a session low of $54.64 a barrel, the weakest since mid-September 2017, while WTI sank to $45.82, near its lowest since late August 2017.

In US Equity Markets indices fell over 1 percent on Thursday, with the S&P 500 marking a 15-month lows, as disappointing earnings reports added to the gloom after the Federal Reserve quashed hopes of a toned-down approach to its interest-rate hike trajectory. The high-growth S&P healthcare and technology sectors led the declines, falling 0.93 percent and 1.49 percent. The S&P 500 was down 0.99 percent, at 2,482.13 and the Nasdaq Composite fell 1.39 percent, at 6,544.29. The only gainers among the 11 major S&P sectors were the defensive utilities and real estate sectors.

In Bond Markets U.S. Treasury yields fell to more than eight month lows on Thursday, and the yield curve flattened, as investors continued to evaluate the Federal Reserve’s plans to continue tightening monetary policy. Benchmark 10-year yields fell as low as 2.748 percent on Thursday, the lowest since April 4. The yields have fallen from a seven-year high of 3.261 percent on Oct. 9. The yield curve between two-year and 10-year notes flattened to 9 basis points, matching the difference in yields reached on Dec. 4, which was the narrowest since 2007.