Europe Drifts Lower Despite Gains in Commodity Stocks

Stocks in Europe edged lower, while U.S. futures were little changed Thursday, as financial markets got off to a slow start for the final month of the year.

The moves came after Asian shares gained overnight on the back of crude prices jumping more than 8% Wednesday following a deal from the Organization of the Petroleum Exporting Countries to cut production. Brent crude was up 0.5% Thursday at around $52 a barrel.

Commodity-related shares gained in Europe, but weakness across most other sectors dragged the Stoxx Europe 600 down 0.4% in early trade. European shares lagged a rally in U.S. stocks in November as investors have remained cautious ahead of key political events in the continent, including Italy's constitutional referendum on Sunday.

U.S. stock futures, meanwhile, pointed to a flat opening for the Dow Jones Industrial Average Thursday.

In Asia, Australia's S&P ASX 200 closed up 1.1%, while Japans's Nikkei Stock Average also rose 1.1% to close at its highest level of the year.

The WSJ Dollar Index, which measures the buck against a basket of 16 other currencies, fell 0.3% Thursday, after closing at its second highest level of the year Wednesday on the back of solid U.S. economic data.

Global government bonds remained under pressure, with the yield on the 10-year Treasury note up at 2.387% from 2.365% at Wednesday's close, according to Tradeweb. Yields rise as prices fall.

Write to Christopher Whittall at [e-mail]

(END) Dow Jones Newswires

December 01, 2016 04:05 ET (09:05 GMT)

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