Close May 22

​In European Equity Markets the pan-European STOXX 600 closed 0.15% lower, banks showing a 1.45% decline while technology stocks led gains, rising 1.24%. U.K. stocks traded 0.21% above the flat line, supported by a slide in the Brexit-affected pound. Royal Mail shares rose 5.4% as a result of a promise of a further £1.8 billion ($2.29 billion) investment in a U.K. turnaround plan in its full-year results, in which the former state-owned monopoly cut its dividend by 40%. Danish IT company Simcorp jumped 11.1% after reporting first-quarter earnings before interest and tax (EBIT) of 26.4 million euros.



In Currency Markets the U.S. dollar held near a one-month high on Wednesday amid heightened trade tensions between the United States and China and ahead of the release of Federal Reserve meeting minutes which may provide more clues on why the central bank stood pat on interest rates earlier this month. Sterling was the only notable loser going into the North American session down 0.57% to its lowest since Jan.4, and last at $1.263. Political uncertainty in Britain deepened as Prime Minister Theresa May’s final attempt to seal a Brexit deal failed to win over opposition lawmakers.



In Commodities Markets oil futures sank on Wednesday as an unexpected build in U.S. crude stockpiles compounded investor worries that a prolonged trade war between Washington and Beijing could dent crude demand. Brent crude futures shed $1.01 a barrel, or 1.4%, to $71.17 a barrel. U.S. WTI crude futures fell $1.28 a barrel, or 2.0%, to $61.85. U.S. crude inventories swelled by 4.7 million barrels in the latest week to their highest since July 2017, the U.S. EIA reported. Analysts polled by Reuters had forecast a decrease of 599,000 barrels as refineries cut output.



In US Equity Markets stocks fell on Wednesday, as reports that Washington could impose sanctions on another Chinese company heightened trade worries, while a slump in Qualcomm shares pressured the technology sector. Qualcomm Inc fell 10.1%, contributing the most to a 0.43% drop in the S&P 500 technology sector. The Philadelphia Semiconductor index slipped 1.57%. The S&P 500 was down 0.36%, at 2,854.15 and the Nasdaq Composite declined 0.33%, at 7,760.10. Nordstrom Inc fell 10.6% after the department store operator reduced its forecast for full-year sales and profit.



In Bond Markets U.S. Treasury yields fell on Wednesday, weighed down by worsening trade tensions between the United States and China after a media report that the Trump administration is considering limits to Chinese video surveillance firm Hikvision's ability to buy American technology. U.S. 10-year note yields fell to 2.398% from 2.426% late on Tuesday. Yields on U.S. 30-year bonds slid to 2.818% from 2.842% on Tuesday. On the short end of the curve, U.S. 2-year yields were down at 2.228% from Tuesday's 2.258%.