European Markets closed in the red after three ministers in the British government resigned over the Brexit deal reached between the United Kingdom and the European Union. Earlier in the day, Brexit Secretary Dominic Raab, Minister for Northern Ireland Shailesh Vara and Work and Pensions Secretary Esther McVey decided to quit, citing a threat to the integrity of the country that the agreement allegedly poses. The pound suffered a hit as the resignations were coming in, dropping over 2% at one point during the session. Meanwhile, leading hardline Brexiter Jacob Rees-Mogg has submitted a letter of no confidence in the UK's Prime Minister Theresa May. Investors also digested data on the rising trade surplus in the Eurozone, as well as the monthly decline in retail sales in the UK.

The DAX was down 0.54% at the closing bell. The biggest loser was Merck, decreasing by 2.55%, followed by Continental and Covestro which both fell 2.37%, and Daimler's drop of 2.35%. The FTSE 100 traded flat at the close, barely in the negative territory. The Royal Bank Of Scotland led the losses, plunging 9.59%, while steel and mining company Evraz finished gaining 5.04%. In Paris, the CAC 40 lost 0.72%, dragged down by Peugeot, which shrunk by 5.24%, worse than any other component.

The Safe Haven Sovereign Bonds

Benchmark European sovereign bonds were the favourable safe haven assets on Thursday amid the escalation of the Brexit crisis, which dramatically increased the odds for the United Kingdom's departure from the European Union without an arrangement for close future relations. Investors flocked toward German and British debt securities as the stock exchanges were suffering a beating and the pound was looking at the fourth largest daily decline versus the dollar since the referendum in June 2016.

Dell Downgraded by Fitch

Dell Technologies Inc. was affirmed at BB+ in Fitch Ratings' long-term issuer default grade update on Thursday, but it estimated the technology hardware producer's perspective has worsened. The revision of the outlook to negative from stable immediately follows the decision by the company to significantly raise the offer for the buyout of the VMware tracking stock.

As the computer maker from Round Rock, Texas, has said it would add $5 billion in debt, the loan was assigned a BBB- rating. The credit appraiser highlighted total debt of $55.3 billion, mostly accrued from the acquisition of EMC. The subsidiary received an equivalent downgrade as the holding firm.

Up to 59% of the total consideration will be payable in cash, while holders of class V tracking stock DVMT can control between 17% and 33% of Dell after the transaction, according to current terms. The deal simplifies the VMware ownership structure and enhances contingent liquidity, as well as provides some clarity around Silver Laker Partners' exit strategy, the rating agency estimated.