Canada’s main stock index fell on Thursday as energy and mining stocks dragged due to lower oil prices and a reversal in bullion following the suspension of campaigning for Britain’s European Union referendum after a lawmaker was shot dead. Those odds slipped below 39 after surpassing 44 hours earlier.
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Meanwhile, the Bank of England also kept its key interest rate unchanged at a record low of 0.5% and made no changes to its $530 billion asset-purchase program. They are preparing for the worst on a Brexit vote.
The Nikkei Stock Average sank 3.1% after the Bank of Japan left its monetary policy unchanged, lifting the yen, thereby reducing the competitiveness of Japanese exporters.
Analysts said the incident could rally a sentiment supporting Britain to remain in the European Union, at a time when the “Leave” campaign was gathering momentum.
The S&P 500 .spx was down 6.35 points, or 0.31 percent, at 2,071.64. Sentiment has soured from just a week ago, when the measure climbed toward a record on optimism that a mix of low rates and moderate economic growth would continue to support higher stock prices.
Data on Thursday showed initial jobless in the USA claims rose more than forecast last week, while the cost of living in the USA excluding food and fuel rose in May, propelled by rising rents.
Tech shares dropped 0.8 percent.
The pound wiped out its decline versus the dollar to strengthen a second day. The Guardian newspaper reported an eyewitness saying Cox’s attacker had shouted “Britain First”. West Yorkshire Police said a 52-year-old man was arrested by officers nearby and weapons including a firearm recovered. That’s the name of a group that campaigns against immigration and Britain’s membership in the EU.
Reflecting the weakness in the semiconductor sector, the Philadelphia Semiconductor Index has fallen by 1.3 percent on the day. The Bloomberg Dollar Spot Index added 0.1 per cent, after falling on Wednesday.
For the week, the three indexes each posted declines of at least 1 per cent, with the Nasdaq falling almost 2 per cent. The Nasdaq composite dropped 27 points, or 0.6 percent, to 4,817.
Prices fell and volume surged in a week of heightened anxiety for United States investors, whose dreams of reaching a record high anytime soon all but faded away. The yield on 30-year debt also trimmed declines, after retreating to the lowest level in 16 months.
USA stocks held gains after the decision, but reversed course late in the session to conclude a fifth consecutive day of declines.
In commodities, oil prices continued to retreat, with Brent crude dropping 1.4% to $48.28 a barrel and copper sinking 2.1% to $4,545 a ton.
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The report said housing starts edged down by 0.3 percent to an annual rate of 1.164 million in May from the revised April estimate of 1.167 million.
