European stocks on Wednesday closed a topsy-turvy session at a two-month low, with the euro pulled lower intraday while the pound leapt as investors reassessed policy stances at both the European Central Bank and the Bank of England. Major European benchmarks turned modestly higher as the euro declined, but many of them eventually settled slightly in the red.
A rally by financial and technology stocks on Wednesday helped lift U.S. equity indexes, with the S&P 500 posting its largest one-day gain in two months while Nasdaq Composite recorded its best day in eight months. The large-cap index has been somewhat "fickle" this month with three of this year's biggest gains and two of its worst losses having occurred in June, according to Frank Cappelleri, executive director of Instinet.
Equity markets in Asia were higher early Thursday, with finance stocks broadly leading gains after all major U.S. financial institutions received approval from the Federal Reserve to ramp up dividend payouts and share buybacks. The approvals - the first time since the annual tests began in 2011 that all firms got passing grades - reflect a turning point for big financial institutions that have been shackled by tighter regulation since the crisis.
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