In European Equity Markets indices traded in negative territory on Thursday as investors remained cautious in the face of Brexit and Italy budget difficulties in Europe. The pan-European Stoxx 600 was down 0.65 percent, with all major country indexes in negative territory. In terms of sectors, Travel & Leisure stood alone as a winner, up 0.32 percent. Basic Resources was the worst performing sector, down 1.55 percent. Looking at individual stocks, Centrica finished down 9.02 percent. This after the owner of British Gas lost 372,000 home energy accounts in four months amid rising competition.

In Currency Markets sterling jumped to a one-week high on Thursday after Britain and the European union agreed on a text setting out their post-Brexit ties that can be endorsed by EU leaders at a summit. The pound rose as much as one percent versus the dollar after the text was sent to EU governments stating that both parties will have “a trading relationship on goods that is as close as possible.” The pound was up 1 percent at $1.2928, its highest since a rally last week. It also strengthened 0.7 percent against the euro to 88.41 pence

In Commodities Markets oil prices fell on Thursday after U.S. inventories swelled to their highest level since December adding to concerns about a global crude glut but OPEC talk of an output cut limited losses. Benchmark Brent had fallen 10 cents to $63.32 a barrel, partially recovering from a more than $1 decline in early European trading. U.S. WTI fell more than a $1 before easing back to trade down 28 cents at $54.35. Trading was thin due to Thursday’s Thanksgiving holiday in the United States.

In US Equity Markets trading was closed on Thursday for the Thanksgiving public holiday.

In Bond Markets Italy’s two-year bond yield fell to its lowest since late September on Thursday on the prospect of a compromise between Rome and EU authorities over its contentious budget plans. Italy’s two-year bond yield fell as much as 21 basis points to a low of 0.92 percent at one stage, though it did ease to one percent by the market close. Still, a 12 basis point fall adds to a 26 bps fall on Wednesday that was the biggest daily slide since June. Five-year yields fell14 bps to 2.52 percent, while 10-year yields fell 5 bps to 3.35 percent.