In European Equity Markets indices finished Thursday’s trade on a relatively positive note, as investors delved through corporate earnings, while keeping an eye on market moves overseas. The pan-European ended trade up 0.53 percent provisionally, off session highs, while sectors closed mostly higher. The FTSE 100 rose 0.29 percent by the close, while France’s CAC 40 speed ahead, up 1.11 percent. Germany’s DAX, however, finished roughly flat. Airbus was on the top of the STOXX 600 after the continent’s biggest aerospace firm beat profit and earnings expectations. Shares closed up 10.3 percent on the news. Dutch insurer Aegon rose 2.18 percent after the firm posted its latest figures. The company doubled quarterly net income and lifted estimates for future earnings.
In Currency Markets the US dollar fell across the board on Thursday, hitting a 15-month low against the yen, as negative sentiment around the U.S. currency outweighed a rise in 10-year Treasury yields to their highest levels in four years. The greenback had briefly jumped on Wednesday after data showed U.S. inflation was stronger than expected in January, bolstering expectations that the Federal Reserve could increase interest rates as many as four times this year. But it quickly turned lower, eventually posting its worst daily performance in three weeks against a basket of major rivals. Against the yen, the dollar skidded as much as 0.8 percent from Wednesday’s close to 106.15 yen, its lowest since November 2016.
In Commodities Markets oil slipped below $64 a barrel on Thursday as record U.S. production and rising inventories outweighed a weak dollar and Saudi Arabia’s comments that OPEC and other producers were committed to their pact on cutting supplies. U.S. crude output hit a record 10.27 million barrels per day, the EIA said on Wednesday, making it a bigger producer than Saudi Arabia. U.S. crude and gasoline inventories rose last week, U.S. data showed. Brent crude, the global benchmark, fell 78 cents to$63.58, giving up an earlier gain that had extended Wednesday’s rally. U.S. crude declined 51 cents to $60.09. Crude inventories rose by 1.8 million barrels in the week to Feb. 9, the U.S. Energy Information Administration said, an increase that was less than analysts’ forecasts.
In US Equity Markets main indexes were trading higher on Thursday with gains in technology and industrial stocks more than offsetting losses in energy stocks. The S&P 500 energy index was down nearly 2 percent. The S&P 500 rose 0.21 percent to 2,704.22. The Nasdaq Composite gained 0.5 percent to 7,179.58, helped by gains for Apple and Cisco. Apple rose 1.6 percent after Warren Buffett’s Berkshire Hathaway made the iPhone maker its top investment. Cisco gained 3.3 percent on upbeat results and forecast. Seven of the 11 major S&P sectors were up, led by gains in technology and industrials. The S&P 500 has now gained about 5 percent since last Thursday, but is still 5.5 percent below its record high on Jan. 26.
In Bond Markets the gap between German and U.S. 10-year borrowing costs reached its widest point since April on Thursday after higher-than-expected inflation in the United States led to a sharp sell-off in U.S. Treasuries. German 10-year government bond yields were a basis point higher at 0.76 percent on Thursday, holding below recent 2-1/2-year highs of 0.81 percent. Most other euro zone government bond yields were also higher by 1-2 bps, partly driven upwards by large bond sales by Spain and France on the day. German 2-year bond yields briefly rose to their highest since May 2016 at minus 0.47 percent, while 30-year bond yields touched their highest in over a year.