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European stocks steadied as investors sought to put Wednesday’s selloff behind them and as bonds rose. The dollar was stronger and the yen pared some of yesterday’s gains.
The Stoxx Europe 600 Index held its ground, trading little changed even after most equity gauges in Asia retreated. The dollar was stronger for the third day in four, while the British pound extended its retreat for a fourth day.
The yield on 10-year U.S. Treasuries declined after China said a news report on officials having recommended slowing or halting purchases of the securities might have cited a “wrong source.” West Texas crude oil was unchanged above $63 a barrel.
Despite the drop in Asian equities, traders appear to be shaking off some of the concerns that led to Wednesday’s selloff. Analysts at Morgan Stanley advised investors not to worry in a note published in U.S. hours on Wednesday, countering earlier warnings by Bill Gross that Treasuries are in a bear market. Robust demand for a 10-year bond auction also helped stem concerns.
Elsewhere, the Canadian dollar and Mexican peso added to declines triggered by a report that Canadian officials see rising odds the Trump administration will leave Nafta. – Bloomberg
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