In European Equity Markets the pan-European Stoxx 600 crept into positive territory during afternoon deals, paring earlier losses,and finishing 0.25 percent higher. Banking stocks led the losses, down more than 1% ahead of earnings announcements from large financial firms this week. Looking at individual stocks, Umicore fell more than 17%. The Belgian materials tech and recycling company downgraded its revenue and earnings forecast for 2020. Volkswagen’s shares lost around 1.7% after it emerged that German prosecutors were investigating bonus payments.
In Currency Markets sterling slid to a two-month low on Tuesday as hopes for a breakthrough in Brexit talks between the ruling and opposition parties faded and British Prime Minister Theresa May faced growing pressure to quit. Britain’s parliament returned from an Easter recess on Tuesday as the government continued its talks with the opposition Labour party about forging a Brexit agreement that can win the support of lawmakers. After earlier trading as high as $1.3019 in mid-European trading, the pound fell to as low as $1.2928, down 0.3 percent on the day.
In Commodities Markets oil prices hit their highest since November on Tuesday after Washington announced the end of all waivers on imports of sanctions-hit Iranian crude, pressuring importers to stop buying from Tehran. Brent crude futures rose as high as $74.70, a level not seen since Nov. 1, before paring their increase as the market gained confidence that global supply would remain robust. U.S. West Texas Intermediate crude futures were at $66.19 per barrel, up 64 cents or about 1 percent, having earlier reached their highest since October at $66.31.
In US Equity Markets stocks edged higher on Tuesday, as upbeat results from Coca-Cola, Twitter and a host of industrial companies allayed investor concerns about slowing profits. The S&P 500 was up 0.26%, at 2,915.62 and the Nasdaq Composite rose 0.52%, at 8,056.63. Seven of the 11 major S&P sectors were higher, with technology sector’s 0.6% gain providing the biggest boost. Walt Disney Co rose 1.6% ahead of the worldwide release of “Avengers: Endgame”, which is set to hit theaters around the globe on Wednesday.
In Bond Markets Italy’s 10-year government bond yield jumped to its highest in seven weeks on Tuesday, pushed up by unease over government infighting and an upcoming ratings review. Italy’s 10-year bond yield jumped 10 basis points to 2.70 percent – its highest since early March. That pushed the Italian/German yield gap to its widest since late February at almost 265 bps. Germany’s benchmark 10-year bond yield rose 2.5 bps to 0.049 percent, roughly five bps below last week’s four-week highs.