* In US economic data, the Philadelphia Fed Manufacturing Index fell by 0.7 points to 22.2 points (survey: 20 points) in October. The Conference Board Leading Index rose by 0.5% (survey: +0.5%) in September. Initial claims for state unemployment benefits (jobless claims) decreased by 5,000 to 210,000 (survey: 212,000) for the week ended October 13.
* European sharemarkets fell on Thursday. Italy's FTSE MIB index fell by 1.9%, pressured by rising Italian government bond yields, with the 5-year yield up by 19 points to a 5-year high of 3.15% after European Central Bank President Mario Draghi increased pressure on the Italian government to rein in its budget ambitions. Shares of HeidelbergCement fell by 8.6% after it cut its profit guidance for 2018. The pan-European STOXX600 index fell by 0.5%. The German Dax index was down 1.1% and the UK FTSE index fell 0.4%. In London trade, shares of Rio Tinto fell by 1.6% and BHP shares fell by 1.5%.
* US sharemarkets declined on Thursday, remaining volatile in October. Disappointing earnings results from Cessna business jet maker Textron (-11.3%) and equipment rental company United Rentals (-15.0%) dampened sentiment. And US-Saudi Arabia tensions weighed on defence contractors Lockeed Martin (-1.6%) and Raytheon (-0.8%). Shares of PulteGroup (-1.8%) and NVR (- 3.8%) fell after Bank of America Merrill Lynch downgraded housing construction companies. Apple shares fell 2.3%. The Dow Jones fell by 327 points or 1.3%. The S&P500 index fell 1.4% and the Nasdaq index fell by 157 points or 2.1%.
* US treasury prices rose (yields fell) on safe haven demand on Thursday. But data showed that jobless claims fell to levels last seen in 1973, suggesting a further tightening in the labour market and interest rates. US 2-year yields fell by 1 point to 2.8783% and US 10-year yields fell by 2 points to 3.1824%.
* Major currencies were weaker against the US dollar in US and European trade compared with the Asian close. The Euro fell from highs near US$1.1525 to lows near US$1.1451 and was near US$1.1459 in late US trade. The Aussie dollar fell from highs near US71.51 cents to lows near US70.97 cents and was near US71.02 cents in late US trade. But the Japanese yen strengthened from 112.64 yen per US dollar to near JPY111.97 and was near JPY112.22 in late US trade.
* Global oil prices continued to fall on Thursday after a US Energy Department report showed oil producers have put 22 million barrels in storage tanks over the past four weeks of increases in US crude inventories. Brent crude fell by US76 cents or 0.9% to US$79.29 a barrel and the US Nymex price fell by US$1.10 or 1.6% to US$68.65 a barrel.
* Base metal prices were mostly lower on the London Metals Exchange on Thursday. Lead fell the most (-2.5%) and copper was down 0.9% on China growth concerns. But zinc rose by 0.8% on shrinking global supplies and Chinese re-stocking.
* The gold futures price rose by US$2.70 an ounce or 0.2% to $1,230.10 an ounce. The spot gold price was trading near US$1,225 an ounce in late US trade. Iron ore rose by US5 cents or 0.1% to US$74.30 a tonne.
Ahead: No major data releases are scheduled in Australia. In China, economic growth (GDP) and activity data are scheduled for 1pm AEDT. And US existing home sales are issued.
