In European Equity Markets the pan-European Stoxx 600 fell more than 3.3 percent with all and major bourses sectors in negative territory. Europe’s basic resources stocks, with their heavy exposure to China, fell 4.2 percent during the session. Britain’s FTSE 100 index declined 3.6 percent Thursday, as mining stocks fall. London-listed Antofagasta led the sector losses, down more than 7 percent. Meanwhile, autos stocks were also among the worst performers, down more than 4.5 percent. Faurecia and Daimler both fell more than 6 percent.
In Currency Markets the US dollar weakened against major peers on Thursday as U.S. Treasury yields tumbled and traders scaled back expectations on the number of rate hikes the Federal Reserve would implement amid weakening economic data and heightened market volatility. The euro was 0.33 percent higher against the dollar at $1.1382. The Canadian dollar fell against its U.S. counterpart to a nearly 18-month low, as Bank of Canada Governor Stephen Poloz said the economy was weaker than forecast and predicted low oil prices would cut growth.
In Commodities Markets oil fell in choppy trading on Thursday after OPEC ended a key meeting having made no decision on crude output, as it prepared to debate the matter with other exporters the next day. The Organization of the Petroleum Exporting Countries (OPEC) met in Vienna to decide its production policy in coordination with non-OPEC producers including Russia, Oman and Kazakhstan. Brent crude futures were down $2.07 on the day to $59.49 a barrel, having hit a session low of $58.36, while U.S. futures fell $1.38 to $51.51 a barrel.
In US Equity Markets the S&P 500 and the Dow fell back into losses for the year on Thursday as U.S. stocks slid on mounting worries of slowing global growth. The Dow fell more than 3 percent, or over 750 points, while the S&P and the Nasdaq shed roughly 2.5 percent, adding to a more than 3 percent decline for the three indexes on Tuesday. Apple Inc fell 3.1 percent and was the biggest drag on the S&P and the Nasdaq, while trade bellwether Boeing Co’s 6.6 percent decline weighed the most on the Dow.
In Bond Markets U.S. Treasury yields fell on Thursday, with 10-year yields hitting three-month lows, as traders scaled back expectations on the number of rate hikes the Federal Reserve would implement amid weakening economic data and market volatility. The benchmark 10-year yield hit a three-month trough of 2.845 percent. It was last down 7 basis points at 2.851 percent. The spread between two-year and 10-year yields widened 2 basis points to 13.60 basis points after it narrowed to 9 basis points on Tuesday, its tightest level in over a decade.