In European Equity Markets the pan-European Stoxx 600 was up 1.3% during afternoon deals, with technology stocks climbing 1.8% as all sectors and major bourses traded in positive territory. Earnings are also in focus for major European corporates, after German submarines-to-elevators giant Thyssenkrupp posted a net loss of 94 million euros ($105.37 million) for the quarter and posted its fourth profit warning under current boss Guido Kerkhoff. The company’s stock traded 3.5% higher, however, as markets had apparently priced in the weak results.
In Currency Markets sterling gained as some risk appetite returned to financial markets on Thursday, but it remains near 2017 lows and markets expect the currency will weaken further. Risk sentiment stabilised after China reported that exports rose in July, bolstering demand for the pound. Sterling rose 0.3% to $1.2777, although that left it close to the 31-month low of $1.2080 it reached early this month. Against the euro, sterling was up 0.2% to 92.10 pence, close to this week’s two-year low of 92.49.
In Commodities Markets oil jumped more than $1 per barrel on Thursday on expectations that falling prices could lead to production cuts, coupled with a steadying of the yuan currency after a week of turmoil spurred by an escalation in U.S.-China trade tensions. Brent crude was up $1.35, or 2.4%, at $57.58 a barrel by 11:30 a.m. (15:30 GMT), after hitting a session high of $58.01. U.S. West Texas Intermediate (WTI) crude futures CLc1 rose $1.69, or 3.3% to $52.78 a barrel after hitting a peak of $52.91.
In US Equity Markets stocks rose on Thursday as better-than-expected domestic and Chinese data as well as a steadying yuan offered some comfort to investors rattled by an escalation in trade tensions. The S&P 500 was up 16.82 points, or 0.58%, at 2,900.80. The Nasdaq Composite was up 49.73 points, or 0.63%, at 7,912.56. Advanced Micro Devices Inc gained 9.8% after the chip-maker launched its second generation of its processor chip for data centers and said that it had landed Alphabet Inc’s Google and Twitter Inc as customers.
In Bond Markets German government bond yields rose and the stock market extended gains on Thursday after a senior government official said Berlin was considering a fiscal policy U-turn to issue new debt to finance a climate protection programme. German benchmark bond yields hit a day’s high of -0.523%, while the 30-year yield rose to within a whisker of zero at -0.001%.