European Markets Shift as Oil Prices Fall and Yen Gains
European markets reversed gains on Thursday as oil prices fell. The Bank of England held rates at 3.75 percent while the yen rose amid intervention warnings.
Brent Crude Oil fell 4% to $113 a barrel on Thursday afternoon as European markets reversed a sharp rally. Prices earlier reached a four-year high of $126 overnight following supply concerns involving Israel and Iran. The volatility, which swung over 10 percentage points, follows a hawkish United States Federal Reserve shift and signals from the United Kingdom on interest rates.
### Yen Intervention Fears and Gilt Yields The USD/JPY fell 2.1% to below 157 on Thursday afternoon as the yen surged 2% against the dollar. Japan Finance Minister Satsuki Katayama said the timing for decisive action is nearing. This represents the largest one-day gain for the yen since last August, when it fell 2.25%.
