In European Equity Markets the pan-European STOXX 600 was up 0.11 percent, with sectors pointing in different directions at the end of market trade. On the industry front, basic resources outpaced fellow European sectors, finishing up 1.7 percent amid news of an improving global trade outlook. London-listed miners Evraz, Anglo American, BHP Billiton were top sector performers, with Kaz Minerals being the group and the STOXX 600’s biggest gainer, finishing the session up 8.4 percent. Sydbank fell to the bottom of Europe’s benchmark after it missed analyst expectations for the first half of the year. Its shares fell over 11 percent by the close.

 

In Currency Markets the US dollar stuck to a four-week low on Tuesday, as the U.S.-Mexico trade deal reached Monday aimed at overhauling the North American Free Trade Agreement prompted investors to continue unwinding their safe-haven bets on the greenback and boosted appetite for riskier assets. The U.S. currency has fallen for three straight weeks, down nearly 2 percent. The euro, meanwhile, rose 0.2 percent to $1.1708, despite worries Italy’s public deficit could exceed the European Union’s ceiling of 3 percent of gross domestic product, senior officials said.

 

In Commodities Markets oil prices stabilized on Tuesday, pausing after strong gains last week, but losses were limited after a U.S.-Mexico trade agreement eased concerns about tensions between the two countries.Brent crude futures rose 6 cents to $76.27 a barrel. The global benchmark touched $76.97 earlier in the session, the highest since July 11. U.S. West Texas Intermediate (WTI) crude futures fell 21 cents to $68.66 a barrel. Market participants awaited industry data on U.S. oil inventories, due at 4:30 p.m. EDT, that was expected to show a decline in crude stocks last week. Official data is due on Wednesday.

 

In US Equity Markets indexes rose on Tuesday, with the benchmark S&P 500 and the Nasdaq indexes hitting fresh all-time highs, as a trade agreement between the United States and Mexico calmed fears of a global trade war. The S&P 500 was up 0.17 percent, at 2,901.65 and the Nasdaq Composite was up 0.15 percent, at 8,029.84. Best Buy fell 8 percent, the most on the S&P, after the electronics retailer’s quarterly online sales growth slowed and its current-quarter profit forecast missed estimates. Coty rose 7.2 percent, the most on the S&P, and Estee Lauder gained 2 percent after Morgan Stanley upgraded the shares of the beauty products makers.

 

In Bond Markets Treasury yields on Tuesday morning rose across maturities to weekly highs, as fears of a global trade war abated a day after the United States and Mexico reached agreement on an overhaul the North America Free Trade Agreement (NAFTA). The yield on the 10-year note was up 2.2 basis points, last at 2.873 percent, after rising 2.9 basis points on Monday on the trade news. The 30-year bond yield also rose 2.5 basis points, last at 3.025 percent, after rising 2.8 basis points Monday. The short end of the curve moved less, with the two-year note yield up less than half a basis point.

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