In European Equity Markets the pan-European Stoxx 600 closed up 0.4 percent, although it had traded higher earlier in the day. All major bourses were in positive territory with German’s XETRA DAX leading the way, finishing trade up 1.2 percent. Autos stocks led the gains, closing up 3.4 percent amid news that German car-makers were now prepared to support an elimination of EU tariffs on cars imported from the U.S. Shares of Daimler, BMW and Volkswagen all closed around 4 percent higher. Meanwhile, basic resources, chemicals and technology were all sectors up over 1 percent by the end of the day’s trading.
In Currency Markets the US dollar fell to three-week lows on Thursday, as the euro gained on strong German industrial orders, while data showing jobs rose less than expected in June plus nagging concerns about global trade also reined in the greenback’s recent rally. The euro climbed after German industrial orders had a higher-than-expected jump in May following four consecutive monthly declines, as demand from domestic customers and the rest of the euro zone picked up. The euro rallied to a three-weak peak and last changed hands at $1.1697, up 0.4 percent. Monthly payrolls data follow on Friday.
In Commodities Markets oil edged lower on Thursday but still stood not far off its highest in 3-1/2 years, boosted by potential disruptions to flows from Iran and the Middle East despite a fresh demand from U.S. President Donald Trump that OPEC cut prices. Brent crude futures were at $77.99 a barrel, down 25 cents. U.S. crude futures were also down 25 cents at $73.89, not far from Tuesday’s 3-1/2-year high above $75. Trump again on Wednesday accused the Organization of the Petroleum Exporting Countries of driving up fuel prices. OPEC together with a group of non-OPEC producers led by Russia started to withhold output in 2017 to prop up the market.
In US Equity Markets stocks inched higher on Thursday with investors mulling Washington’s stance on trade as it looked to dial back tariff threats on European cars while moving to impose duties on Chinese goods worth $34 billion. The S&P 500 was up 0.45 percent, at 2,725.49 and the Nasdaq Composite was up 0.59 percent, at 7,546.73. Technology stocks led the gains, helped by chipmakers Qualcomm, Intel and Qorvo. Micron Technologies rose 2 percent after the company said a temporary ban on some sales in China would hurt its quarterly revenue by just 1 percent. The Philadelphia Semiconductor index rose 1.8 percent.
In Bond Markets Italy led a broad selloff in southern European government bonds on Thursday, after indifferent demand for a Spanish debt auction spooked investors already worried about defiant comments from the new Italian government on its budget plans. Spain sold 4.76 billion euros of debt at an auction on Thursday, below the maximum target of 5.5 billion euros and demand was down across the tranches compared to previous auctions. Italy’s 10-year government bond yields rose 6 basis points to 2.71 percent, while shorter-dated two- and five-year yields rose 12 bps each. Spanish and Portuguese equivalents were 3-4 bps higher.