European Equity Markets
The Stoxx 600 closed higher by 0.4%. All major bourses also closed higher with the German DAX leading the way, finishing up 1.2%. Auto stocks led the gains closing up 3.4% thanks to the news of German car-makers were prepared to support an elimination of EU tariffs on cars imported from the U.S. Shares of Daimler, BMW, and Volkswagen all closed around 4%higher.
US Equity Markets
Major indices closed higher on Thursday as reports that the US and the EU may agree to withdraw auto tariffs. Technology stocks led market gains on the S&P 500, with shares of several chip-makers rising. The S&P 500 gained 0.86%, to 2,736.61 and the Nasdaq Composite added 1.12%, to 7,586.43. Micron shares rose 2.6% after the company forecast only a small hit from a temporary ban on some sales in China.
Asian Equity Markets
The Shanghai Composite fell 0.34%. Hong Kong’s Hang Seng Index traded 0.48% lower. The Nikkei 225 traded up by 0.81% as most sectors rebounded after the benchmark’s three consecutive sessions of declines. Automakers rose 1.37% as major automakers gained, with Toyota Motor up 1.71%.
Traders caution ahead of Washington’s implementation of its threatened tariffs on Chinese goods and the U.S. jobs report due later in the day. The USD/JPY was 0.1% lower at 110.570 yen. China’s yuan was little changed in offshore trade after dipping 0.2% the previous day.
Oil prices dipped on Friday due to impending import tariffs expected to be imposed later in the day by the world’s two biggest economies, the United States and China. Brent crude futures fell 25 cents to $77.14 per barrel from their last close. U.S. West Texas Intermediate (WTI) futures were down 15 cents at $72.79. Weighing on prices was a rise in U.S. crude inventories of 1.2 million barrels in the week to June 29, to 417.88 million barrels, the U.S. Energy Administration (EIA) said on Thursday.
U.S. shorter-dated Treasury yields increased slightly on Thursday following the Federal Reserve’s release of the minutes from its latest policy meeting, where it hinted at the probability of raising short-term interest rates twice more in 2018. The U.S. yield curve held near its flattest level in about 11 years following the release of the minutes. The yield on benchmark 10-year Treasury notes was 2.838 percent, flat on the day.