In European Equity Markets the pan-European Stoxx 600 ended 0.9% higher, with most sectors and all major bourses in positive territory. Telecoms stocks added around 1.7% to lead gains while tech stocks dipped below the flatline. At the top of the European benchmark, Swedbank climbed 7.7% after reporting better-than-expected fourth-quarter profits before the bell, while French corporate services provider Edenred added 3.7% after brokerage ODDO upgraded the stock to “buy.”
In Currency Markets concerns about the economic fallout from the coronavirus outbreak in China supported safe-haven currencies on Tuesday, with the dollar index at a two-month high and the Swiss franc at a nearly three-year peak against the euro. Though global markets had stabilized somewhat after Monday’s sell-off, risk aversion in currency markets persisted, with the Australian dollar leading losers and the greenback strengthening to an eight-week high against a basket of six rivals.
In Commodities Markets oil futures steadied somewhat on Tuesday after a five-day losing streak as OPEC sources said the group and its allies might tighten the market amid fears that the coronavirus, which has claimed over 100 lives in China, could weigh on oil demand. Brent crude, which oscillated between positive and negative territory during European trading, was down 20 cents at $59.12 a barrel, having hit a three-month low of $58.50 on Monday. U.S. WTI rose 7 cents to $53.21 a barrel.
In US Equity Markets stocks rose on Tuesday as gains in technology and financial shares helped major indexes recover from their worst selloff in about four months on worries over a coronavirus outbreak and its impact on global growth. The S&P 500 gained 0.72% at 3,266.84 and the Nasdaq Composite was up 0.81% at 9,213.74. Shares in Xerox Holdings Corp, known for its photocopiers and printers, jumped 5.1% after it reported 2020 profit above Wall Street expectations.
In Bond Markets benchmark 10-year Treasury yields bounced off three-month lows on Tuesday, after a key part of the yield curve briefly inverted for the first time since October, as investors continued to assess the economic impact from a virus outbreak in China. Benchmark 10-year note yields fell as low as 1.57% overnight, the lowest since Oct. 10, before rising back to 1.62%. The yield curve between three-month notes and 10-year government bonds briefly inverted to to -0.015 basis point ,, its lowest since October, before returning to 5 basis points.