• In US economic data, initial jobless claims fell by 26,000 to 255,000 in the past week. The result was well ahead of forecast estimates and the lowest since November 1973. The US Leading Indicators Index rose by a better-than-expected by 0.6% in June.
  • European shares fell on Thursday on the back of disappointing earnings results. Aberdeen Asset Management was the biggest decliner (down 7.6%) on the FTSEurofirst 300 index. The fund manager said it saw net outflows of £9.9 billion in the June quarter as institutional investors cut exposure to Asia and emerging market equities. The FTSEurofirst 300 fell by 0.5% to a one-week low. The German Dax down fell by 0.1% while the UK FTSE lost 0.2%. In London trade mining shares were weaker with BHP Billiton down by 1.0%, Rio Tinto down by 0.6%.
  • US sharemarkets fell on Thursday as poor earnings results and downbeat forecasts gave investors a reason to sell equities. Caterpillar reported sales declines in key markets its shares fell 3.6%. Nine of the ten major S&P sectors were lower. Dow Chemical hit an intra-day four-year low and closed down 4.5%, warning of soft demand in China. The stock weighed heavily on the S&P material sector which lost 1.5%. American Express fell 2.6% after missing revenue targets. The Dow Jones fell by 119 points or 0.7%. The S&P 500 lost 0.6% while the Nasdaq lost 25 points or 0.5%.
  • US treasury prices rose on Thursday (yields fell to two-week lows) as investors switched to safe-haven government bonds following weak corporate earnings and a slump in commodity prices. US 2 year yields were down by 2 points to 0.698% while US 10 year yields fell by 6 points to 2.269%.
  • Major currencies were mixed against the greenback in European and US trade. The euro rose from lows near US$1.0920 to highs near US$1.1015 and ended US trade near US$1.0990. The Aussie dollar fell from highs near US74.15c to US73.50c and ended US trade near its lows. And the Japanese yen traded between 123.65 yen per US dollar to JPY124.15, ending US trade around JPY123.85.
  • World oil prices fell on Thursday as concerns about ample supply weighed on sentiment. Brent crude fell by US86 cents or 1.5% to US$55.27 a barrel while US Nymex crude fell by US74c or 1.5% to US$48.45 a barrel - the lowest since March.
  • Base metal prices fell by between 0.3-2.4% on the London Metal Exchange on Thursday with the exception of Tin (up 1.1%). Lead was down the most. The Comex gold futures price rose for the first time in 11 sessions on Thursday, up by US$2.60 or 0.2% to US$1,094.10 per ounce. Iron ore fell by US10c or 0.2% to US$50.60 a tonne.

Ahead: In Australia no economic data is released. In the US the new home sales data is released. "Flash" manufacturing gauges are released in China, US and Europe.

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