Global Market Update: US stocks close lower on banking sector concerns

The S&P 500 closed at 4,060.76, down 29.99 points, or 0.73%. The Dow Jones Industrial Average closed down 292.18 points, or 0.87%, at 33,122.06. The Nasdaq Composite was down 61.39 points, or 0.51%, at 11,963.94.

Bank stocks worst affected include PacWest Bancorp which fell 50.6%, First Horizon which fell 33.6% and Western Alliance Bancorporation which fell 38.45%.

PacWest Bancorp said it was exploring strategic options, including a sale.

Canada’s Toronto-Dominion Bank Group canceled its $13.4 billion acquisition of First Horizon Corp.

A report showed jobless claims rose in the week ending April 29 due to increased layoffs and higher borrowing costs. Initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 242,000 for the week.

The US trade deficit narrowed in March as exports of goods, including industrial supplies, rose, according to Commerce Department data.

In March, the overall trade deficit stood at $64.2 billion, which was $6.4 billion less than the February estimate.

The Fed raised interest rates by 25 basis points on Wednesday, while Chair Jerome Powell said it was too early to say with certainty that the rate-hike cycle is over because inflation remains the main concern.

Currencies

The dollar fell from 135.46 to 134.14 Japanese yen. The euro fell from $1.1058 to $1.1016.

europe

European shares declined on Thursday after the European Central Bank (ECB) signaled the need for more tightening and an interest rate hike.

ECB hiked its interest rates by 25 basis points.

The pan-European STOXX 600 index lost 0.47%.

Britain’s FTSE 100 fell 1.1% to close at 7,702.64. Germany’s DAX closed down 0.5% at 15,734.24. France’s CAC 40 closed down 0.9% at 7,340.77.

Asia

Asian shares edged higher on Thursday, offsetting a US rate hike.

Hong Kong’s Hang Seng index was up 1.3% at 19,948.73. The Shanghai Composite closed up 0.8% at 3,350.46. South Korean shares closed flat.

Japan’s Nikkei 225 remained closed due to the holiday.

Australia’s benchmark S&P/ASX 200 index fell nearly 0.1% to 7,193.2. New Zealand’s benchmark S&P/NZX 50 index rose 0.5% to close at 11,968.6.

Stock exchanges in Taipei, Mumbai, Jakarta, Manila and Singapore were up.

oil prices

Brent crude for July delivery rose 17 cents to $72.50 a barrel on Thursday. US crude, the benchmark for June delivery, fell 4 cents to $68.56 a barrel.

bullion

Gold for delivery in June gained $18.70 to $2,055.70 an ounce. Silver for July delivery rose 55 cents to $26.23 an ounce.