Europe fluctuates on earnings reports
On Thursday, UK gilts led a selloff in government bonds and the dollar rose as investors added to bets that central banks around the world will become less accommodative as the economy strengthens. Stocks in Europe fluctuated amid a mixed batch of earnings reports.
Yields on Britain’s gilts jumped to the highest since the nation voted to quit the European Union following a report that showed third-quarter growth exceeded economist estimates. The dollar climbed versus most of its peers on confidence that the Federal Reserve will raise interest rates this year and Norway’s krone surged after the central bank kept its benchmark interest rate unchanged for a fourth meeting. Crude oil traded below $50 a barrel amid doubts that OPEC will implement its first output cuts in eight years. The Stoxx Europe 600 Index swung between gains and losses.
Implied yields on short-sterling futures contracts advanced, a sign investors were paring bets that the Bank of England will cut interest rates again to cushion the blow from the Brexit referendum. Its next interest-rates decision is scheduled for 3 November.
Spanish unemployment fell to the lowest in more than six years, led by a surge in services jobs as Acting Prime Minister Mariano Rajoy moves closer to forming a government after a 10month political deadlock. The jobless rate dropped to 18.9% in the three months through September, the National Statistics Institute said in Madrid yesterday.
Asian stocks fell as oil explorers pushed down Hong Kong gauges, while investors weighed earnings at companies from Samsung Electronics Co. to Orix Corp. Japanese shares retreated from a six-month high. The MSCI Asia Pacific Index dropped 0.6% to 139.09 as of 4.03pm in Hong Kong, poised for its first monthly decline since June.