Close June 27

In European Equity Markets the pan-European Stoxx 600 closed flat. Retail stocks bucked the trend to rise more than 2%, buoyed by a sharp gain in H&M shares, while the media sector led declines with a 0.7% fall. Vodafone is reportedly set to secure EU antitrust approval for its $22 billion bid for Liberty Global’s cable networks in central Europe after offering concessions in May. Vodafone shares rose more than 2%. Shares of Chr. Hansen, meanwhile, fell close to 14% after the Danish bioscience company cut its full-year revenue outlook after posting disappointing profit figures.


In Currency Markets the U.S. dollar held steady against most major currencies on Thursday as traders moved to the sidelines in advance of this weekend’s G20 summit where China and the United States may reach a truce on their trade conflict. The dollar index was on track for it first quarterly loss since the first quarter of 2018. The yen edged down 0.04% to 107.825 yen per dollar. The Japanese currency has risen a solid 2.7% against the greenback in the second quarter, boosted by expectations of Fed rate cuts and the trade war.


In Commodities Markets oil fell to around $66 a barrel on Thursday, weighed down by concerns over whether the G20 summit will produce a breakthrough on trade and perceptions that supply is ample despite prospects for continued OPEC curbs. U.S. President Donald Trump said on Wednesday a trade deal with Chinese President Xi Jinping was possible this weekend but he is prepared to impose U.S. tariffs on most remaining Chinese imports if the two countries don’t agree. Brent crude, the global benchmark, was down 11 cents at $66.38. U.S. WTI crude fell 26 cents to $59.12.


In US Equity Markets stocks drifted higher on Thursday, helped by a rise in technology shares, but gains were limited as investors awaited a G20 meeting for clarity on progress in trade talks between the United States and China. Semiconductor companies, which have a sizable revenue exposure to China, traded higher, with the Philadelphia Semiconductor index up 1.39%. The S&P 500 was up 0.43%, at 2,926.37. The Nasdaq Composite rose 0.57%, at 7,954.72. Ford Motor Co rose 2.3% after reporting it will have cut 12,000 jobs in Europe by the end of next year to try to return the business to profit.


In Bond Markets U.S. Treasury yields fell on Thursday on concerns that trade discussions between the U.S. and China on Saturday may be more complicated than previously expected, boosting demand for safe haven debt. Yields rose overnight after the South China Morning Post (SCMP) said Washington and Beijing were laying out an agreement that would help avert the next round of tariffs on an additional $300 billion of Chinese imports. The Treasury Department will sell $32 billion in seven-year notes on Thursday, the final sale of $113 billion in coupon-bearing supply this week.