In European Equity Markets the pan-European Stoxx 600 closed 0.8%, after fluctuating for much of the session. Trade-sensitive sectors autos and basic resources led the gains, adding over 2% and 3%. In terms of individual stocks, luxury goods maker LVMH climbed more than 5% after strong results, pulling fellow luxury brand Christian Dior over 4% higher. Britain’s Clydesdale Bank jumped north of 6% to lead the Stoxx 600. On the other end, Danish bioscience company Chr. Hansen fell 9% after missing profit expectations.
In Currency Markets the U.S. dollar was on track for its biggest daily decline in five weeks on Thursday against its rivals as the prospects of a partial trade deal between China and the United States fuelled appetite for trade-oriented currencies such as the euro and the Australian dollar. Against a basket of its rivals, the dollar fell 0.4% to 98.66 and was on track for its biggest single-day decline since Sept. 4. The dollar’s weakness ignited a rally in the euro with the single currency rallying 0.5% to a two-week high at $1.10335 as hedge funds cut back their extreme short bets.
In Commodities Markets oil prices rose on Thursday as OPEC indicated that all options were on the table to balance oil markets and that it would take a decision in December on supply for next year. Mohammad Barkindo, leader of the exporter group, did not specify if the move would mean extending a pact to rein in production to stabilize prices, but the comments appeared to nudge the market out of pessimism over U.S.-China trade talks. Global benchmark Brent crude futures rose by 8 cents, or 0.14%, to $58.40 a barrel. U.S. WTI futures were up 10 cents, or 0.19%, at $52.69.
In US Equity Markets stocks gained on Thursday on hopes that top-level U.S.-China trade talks would yield at least a partial deal, while a rise in Apple’s shares lifted the technology sector. The S&P 500 was up 0.63%, at 2,937.67 and the Nasdaq Composite rose 0.63%, at 7,953.90. Cisco Systems Inc fell 1.8%, after a report that Goldman Sachs downgraded the network gear maker’s shares to “neutral”. Apple Inc rose 1.2%, lifting the technology sector by 0.7%, after Longbow Research upgraded the company’s stock to “buy”, citing higher iPhone 11 demand.
In Bond Markets Treasury yields rose on Thursday morning amid hopes for a resolution in trade talks between the United States and China, alleviating some worries over slowing economic growth, as the two countries began a new round of negotiations in Washington. Predictions that the Federal Reserve will cut interest rates by 25 basis points at its October meeting were 77.5% on Thursday morning, slightly lower than the 80.2% on Wednesday, according to CME Group’s FedWatch tool.