European share markets negative

Europe’s share markets dropped back into the red on Thursday as investor worries mounted about slowing global growth in the face of rising U.S. interest rates and trade tensions. Chinese markets extended their slump in Asia amid the trade war with the United States, and with Wall Street closed later for Thanksgiving, Europe followed suit.

The region had plenty of concerns of its own. Italy was under pressure in both stock and bond markets as sparring resumed over its budget plans. Some disappointing bigname earnings added to the gloom.

Sterling traded flat at $1.2784 but down 0.1 percent against the euro to 89.19 pence after Prime Minister Theresa May added little to Brexit plans at a meeting with the head of the European Union’s executive on Wednesday.

May will return to Brussels on Saturday to try and agree an outline for Britain’s withdrawal from the EU. All EU leaders are due to meet on Sunday to approve the deal.

Just over four months before Britain’s departure from the EU, Brexit negotiations and political uncertainty in Britain remain the key drivers for the pound, and many analysts are cautious about its prospects.

Back in the share markets, MSCI’s broadest index of Asia-Pacific shares outside Japan had ended little changed after recovering from an initial wobble. The index has managed to hold up so far in November after three straight monthly declines, but is on track for its worst annual performance since 2011. Japan’s Nikkei had finished almost 0.7 percent higher but Chinese shares closed 0.4 percent in the red.

In commodities, China-sensitive metals like copper fell [MET/L] and oil prices reversed early gains, although they were still above oneyear lows touched earlier this week.

U.S. crude futures were last down 8 cents at $54.55 a barrel after hitting a one-year low of $52.77 on Tuesday. Brent eased 15 cents to $63.33, off Tuesday’s low of $61.71. Gold rose, with spot prices at $1,227.98 an ounce.