In European Equity Markets the pan-European Stoxx 600 fell 1.08 percent by the provisional close, with the majority of the region’s sectors in the red. The FTSE 100 sank 1.22 percent by the close, while France’s CAC 40 slid 1.47 percent and Germany’s DAX fell 0.35 percent. On Wednesday, shares in Greek banks saw a massive fall. Investors fear that regulators will demand further capital. However, on Thursday, Greek lenders closed trade on positive ground, with Piraeus Bank up over 9 percent and the National Bank of Greece also closing up around 9 percent.

In Currency Markets the U.S. dollar weakened on Thursday but stayed near recent highs against the euro and yen, as investors evaluated the impact of a global government bond rout that has lifted benchmark U.S. Treasury yields to seven-year peaks. The yen weakened to 114.53 yen against the dollar earlier on Thursday, its lowest in 11 months, before retracing to 114.00. The euro also recovered from six-week lows against the dollar, after breaching technical support at around $1.15 on Wednesday.

In Commodities Markets oil held just below four-year highs on Thursday, supported by the imminent loss of Iranian supply through U.S. sanctions, but also tempered by the prospect of a rapid production increase from Saudi Arabia and Russia. Brent crude oil futures were down 33 cents at $85.96 a barrel, having risen to a late 2014 high of $86.74 on Wednesday. U.S. crude futures fell 53 cents to $75.88. Nitin Gadkari, India’s transport minister, said his country faced “economic crisis” due to its huge oil imports, two local TV channels reported.

In US Equity Markets stocks fell broadly on Thursday, mirroring weakness in the global markets, as government bond yields jumped to multi-year highs on robust U.S. economic data and optimistic views from the Federal Reserve. Ten of the 11 major S&P sectors were lower, led by a 1 percent drop in the communication services sector. The S&P 500 was down 0.39 percent, at 2,914.11 and the Nasdaq Composite fell 0.80 percent, at 7,960.92. Eli Lilly rose 5 percent after the company’s experimental diabetes drug showed promise in a mid-stage trial.

In Bond Markets Euro zone government bond yields rose sharply on Thursday after U.S. economic data bolstered the case for interest rate hikes in the world’s largest economy and sent Treasury yields to multi-year peaks. Ten-year U.S. Treasury yields reached their highest level in seven years on Thursday. Ten-year U.S. Treasury yields remained pinned near seven-year highs on Thursday at 3.20 percent. Most euro zone bond yields played catch up on Thursday, rising across the board to their highest levels in months in some cases.