British data prompts global bond selloff; oil rises

Expectations ease for a Bank of England interest rate cut

Strong growth data out of Britain prompted the worst daily selloff in government bond for months and pushed yields on the world's benchmark bonds higher on Thursday, as expectations eased for a Bank of England interest rate cut.

In the United States, equity losses led by Comcast and consumer discretionary stocks offset gains in the healthcare sector, while European stocks slid and the US dollar advanced against the Swedish crown and Japanese yen.

Official data showed that Britain's economy slowed only slightly in the three months after it voted to exit the European Union. It grew by 0.5 per cent between July and September, a touch less than the second quarter's 0.7 per cent, enough to temper fears about an immediate economic impact following the Brexit decision.

Britain's 10-year gilt was up 12 basis points to yield 1.27 per cent, on track for its biggest daily rise since June 2015.

German and US equivalents rose to their highest since early June at 0.19 per cent and 1.86 per cent, respectively. US government yields were fuelled further by upbeat jobless claims data and were last at 1.85 per cent.

"The stronger (gross domestic data) print in the UK has given further weight to speculation that the BoE will not provide further stimulus anytime soon," said Rabobank strategist Richard McGuire.

In US equity markets, investors took Qualcomm's deal to buy NXP Semiconductors for about $47 billion as a sign of confidence, sending up shares of both.

Despite beating earnings estimates a day earlier, Comcast pulled the S&P and Nasdaq lower, paring some losses after falling as much as 2.7 per cent following price target cuts from Barclays and Deutsche Bank.

The Dow Jones industrial average fell 11.82 points, or 0.06 per cent, to 18,187.51, the S&P 500 lost 4.15 points, or 0.19 per cent, to 2,135.28 and the Nasdaq Composite dropped 29.66 points, or 0.56 per cent, to 5,220.61.

Interest-rate sensitive sectors also struggled as bond yields rose. The S&P real estate sector was down 2.5 per cent and on track for its worst decline in five weeks while utilities shed 0.4 per cent.

Europe's STOXX 600 slipped 0.01 per cent, with defensive sectors such as healthcare and utilities providing the biggest boost to the index, underscoring investor caution.

The MSCI all-country world stock index was down 0.33 per cent.

The US dollar hit its highest in more than seven and a half years against the Swedish crown after dovish comments from Sweden's central bank, and a three-month high against the yen on expectations for a December Federal Reserve rate hike.

The dollar extended gains during the day, last up 1.82 per cent against the Swedish crown at 9.0702 crowns , after touching 9.0890, its highest level since early March 2009.

Oil prices edged higher on a reported drop in US crude oil inventories, and as commitments from Gulf Opec members assuaged doubts in the market about cooperation from other producers.

US crude settled up 1.10 per cent, or 54 cents, at $49.72 a barrel, while Brent crude added 44 cents, or 84 per cent, to $50.40.