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New York - Global equities and the euro fell on Thursday as weak eurozone data and a lacklustre Italian bond auction heightened worries about debt contagion, but surprisingly strong economic reports buoyed US markets.
Stocks on Wall Street trended higher after data showed the number of Americans claiming new unemployment benefits last week dropped below the 400 000 level for the first time since early April, a hopeful sign for an anaemic US economy.
US stocks briefly added to slight gains after pending sales of existing US homes unexpectedly rose in June from May.
But European data showing eurozone economic sentiment worsened more than expected to 103.2 in July from 105.4 in June, with business optimism falling in all sectors, weighed on negative sentiment towards the euro.
The euro fell 0.42% to $1.4304 while the US dollar index, a basket of major trading currencies, rose 0.20% to 74.233.
“The euro seems to be the flavor du jour at the moment as the market is trading on eurozone contagion issues and the dollar is appreciating by default,” said Dean Popplewell, chief currency strategist at OANDA in Toronto.
European shares fell for a fourth straight session, hitting a one-week low as disappointing earnings and cautious comments from major European companies raised concerns about corporate profits.
Chemical shares bore the brunt of a broad sell-off after BASF reported weaker-than-expected profits and said global economic growth was slowing. Europe’s largest engineering conglomerate Siemens also said risks to the global economy were increasing.
The FTSEurofirst 300 index of top European shares dropped 0.2% to 1 086.34 points.
A bounce-back on Wall Street came after US stocks suffered their worst day in eight weeks on Wednesday. The S&P lost 2% on weak earnings, lacklustre economic data and as US politicians struggle to agree over the nation’s debt ceiling days before the deadline to avoid default.
Brent oil rose above $118 as a storm heading toward the Gulf of Mexico raised the threat of supply disruption and wary traders waited for news on the debt ceiling.
Brent gained 70 cents to $118.13 a barrel. US crude was up 48c to $97.88.
Spot gold prices fell 6c to $1 612.90 an ounce.
Stocks on Wall Street trended higher after data showed the number of Americans claiming new unemployment benefits last week dropped below the 400 000 level for the first time since early April, a hopeful sign for an anaemic US economy.
US stocks briefly added to slight gains after pending sales of existing US homes unexpectedly rose in June from May.
But European data showing eurozone economic sentiment worsened more than expected to 103.2 in July from 105.4 in June, with business optimism falling in all sectors, weighed on negative sentiment towards the euro.
The euro fell 0.42% to $1.4304 while the US dollar index, a basket of major trading currencies, rose 0.20% to 74.233.
“The euro seems to be the flavor du jour at the moment as the market is trading on eurozone contagion issues and the dollar is appreciating by default,” said Dean Popplewell, chief currency strategist at OANDA in Toronto.
European shares fell for a fourth straight session, hitting a one-week low as disappointing earnings and cautious comments from major European companies raised concerns about corporate profits.
Chemical shares bore the brunt of a broad sell-off after BASF reported weaker-than-expected profits and said global economic growth was slowing. Europe’s largest engineering conglomerate Siemens also said risks to the global economy were increasing.
The FTSEurofirst 300 index of top European shares dropped 0.2% to 1 086.34 points.
A bounce-back on Wall Street came after US stocks suffered their worst day in eight weeks on Wednesday. The S&P lost 2% on weak earnings, lacklustre economic data and as US politicians struggle to agree over the nation’s debt ceiling days before the deadline to avoid default.
Brent oil rose above $118 as a storm heading toward the Gulf of Mexico raised the threat of supply disruption and wary traders waited for news on the debt ceiling.
Brent gained 70 cents to $118.13 a barrel. US crude was up 48c to $97.88.
Spot gold prices fell 6c to $1 612.90 an ounce.
