(MENAFN– ecpulse)
U.S. shares fell on Thursday, but were off session-lows at the closing, as sentiment was dampened by Portugal’s largest-listed bank’s decision to delay a debt payment, which sparked worries over the fragility of Europe’s banking system.
Investor worries centered on Espirito Santo Financila Group SA, although those worries seemed to abate over the course of the trading session.
Concerns about the health of a parent company of Banco Espirito Santo hurt peripheral euro zone bonds, curbing demand at Greece`s second debt sale following its 2012 default. It was the first significant episode of contagion for peripheral euro zone markets this year.
-The Dow Jones Industrial Average fell 0.42% or 70.54 points to 16915.07
-The S&P 500 Index fell 0.41% or 8.015 points to 1964.68
-The NASDAQ Composite Index fell 0.52% or 22.83 points to 4396.20
Meanwhile, U.S. economic data continued to show an improving economy. The number of people who applied for unemployment benefits in the first week of July fell to a seven-year low.
In Europe, the pan-european Stoxx Europe 600 index closed lower for a fifth day, dropping 1.1% as banks tumbled after Espirito Santo Financial Group SA.
Gold futures surged on Thursday to settle at their highest level since March 19.
On Friday, the earnings season kicks off in earnest as Wells Fargo & Co. reports before the opening bell.
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