By FX Empire.com
Pessimism spread through European and U.S. markets on Thursday, where traders were disappointed with financial results from JPMorgan Chase, as despite announcing better than expected net income, yet the report showed that investment banking net income fell, which raised concerns over the health of the U.S. banking sector.
Meanwhile, tensions resurfaced in Europe ahead of a bond auction in Italy, where traders are anxious to see whether demand for Italian bond sale will be strong amid the ongoing European debt crisis, noting that optimism has been spread over the past few sessions on hopes EU leaders are working on finding a solution to the EU debt crisis.
Stocks in the United States were lower by opening on Thursday, where the Dow Jones Industrial Average was down by nearly 1% to trade around 11,403, while the S&P 500 index was down by nearly 1.20% to trade around 1192. European stock indexes were also lower before closing on Thursday, where FTSE 100 was down by nearly 1.10% to trade at 5383 and the DAX was down by nearly 1.50% to trade around 5903.
The U.S. dollar rebounded to the upside against a basket of major currencies on Thursday, where the U.S. dollar index was trading at 77.38, compared with the opening level at 77.00. The Euro fell against the Dollar, where the EUR/USD pair traded around $1.3695, compared with the opening level at $1.3777, the British Pound also fell against the Dollar, where the GBP/USD pair traded around $1.5715, compared with the opening level at $1.5734, and the U.S. dollar fell against the Japanese Yen, where the USD/JPY pair was trading around 76.80, compared with the opening level at 77.10.
Gold prices fell on Thursday to trade now around $1658 an ounce and crude oil prices also fell to trade around $83 a barrel.
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