In European Equity Markets the pan-European Stoxx 600 closed down by 0.84 percent with almost every sector in the red. Basic resources fell 2.92 percent and auto stocks fell 1.06 percent on the back of trade concerns. Siemens shares fell 4.69 percent with the industrial firm missing estimates for its quarterly revenue. Kaz Minerals led the losses Thursday, falling 28.3 percent, after it said it had agreed to buy the Baimskaya copper project in the Chukotka region of Russia for $900 million. Broker Jefferies downgraded the stock to hold from buy.

In Currency Markets the pound fell on Thursday despite the Bank of England lifting interest rates from crisis-era lows, after Governor Mark Carney said monetary policy needed to “walk not run” and expressed concern about the risks of a cliff-edge Brexit. The move raising 25 basis points to 0.75 percent was widely expected, although the unanimous decision of the BoE’s nine rate-setters was not. But sterling later fell as much as 0.8 percent to $1.3016, down from around $1.31 before Carney had started his news conference.

In Commodities Markets oil prices traded slightly higher on Thursday, reversing course after a report suggested crude stockpiles at the U.S. storage hub at Cushing, Oklahoma fell in the latest week. U.S. stockpiles have been in the spotlight because they rose unexpectedly last week, stoking fears that the market is becoming oversupplied. Crude inventories at Cushing fell 1.1 million barrels since Friday, July 27. Brent crude futures were up 32 cents at $72.71 a barrel, while U.S. crude futures rose 60 cents to $68.26 a barrel.

In US Equity Markets stocks fell on Thursday, weighed down by financials, as worries of a trade war between the United States and China were heightened after President Donald Trump proposed 25 percent tariffs on $200 billion worth of Chinese imports. Financials fell 0.6 percent, as JP Morgan and Bank of America declined 0.6 percent each. The S&P 500 was down 0.34 percent, at 2,803.93 and the Nasdaq Composite declined 0.17 percent, at 7,694.22. Tesla jumped 10 percent after the electric car maker convinced investors that it was able to produce positive cash flow and turn a profit.

In Bond Markets benchmark government bond yields eased lower as the market sought safety in Treasuries on Thursday morning after trade tensions between the United States and China ratcheted up once more. Yields on shorter-dated maturities fell faster than longer ones, with 2-year note yields down 1.2 basis points. The spread between the 2- and 10-year notes was up on Thursday less than a basis point to 32.30 basis points. The spread between 5- and 30-year bonds was last at 26.8 basis points, up from 25.3 early in the session.