In European Equity Markets the pan-European Stoxx 600 rose 1.74 percent over the session, with all sectors in positive territory. France’s CAC 40 index led the gains among the major bourses, trading more than 2.3 percent higher. Europe’s basic resources stocks were the top performers, jumping almost 3.6 percent higher amid stronger-than-anticipated earnings news. L’Oreal rose towards the top of the European benchmark, after reporting higher third-quarter sales from a year ago. Shares of the Paris-listed stock jumped 6.7 percent on the news.
In Currency Markets the pound jumped on Wednesday after Britain’s Brexit minister said he expected a divorce agreement with the European Union to be reached before the end of November. Sterling jumped as much as one percent versus the dollar to trade at $1.2831, and versus the euro to 88.43 pence after comments by Dominic Raab. The dollar climbed to its highest level in 16 months on Wednesday as investors bought the greenback after Treasury yields extended its overnight gains. Against a basket of its rivals, the dollar rose to 97.167, its highest level since June 2016.
In Commodities Markets oil prices were mixed in volatile trade on Wednesday as strong U.S. demand for fuel helped offset a sixth straight week of crude builds and evidence of rising global supply despite sanctions that are already curbing Iranian crude exports. The Brent crude December futures contract, which expires Wednesday, fell 17 cents to $75.74 a barrel. The more-active January contract rose 15 cents to $76.10 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 11 cents to $66.29 a barrel.
In US Equity Markets stocks rose for a second day on Wednesday, as investors snapped up technology favorites and strong results for General Motors and a host of others lifted spirits at the end of a torrid month for global equities. Shares of Facebook Inc jumped 2.7 percent after the social media giant said margins would stop shrinking after 2019 as costs from scandals ease. The S&P 500 was up 1.41 percent, at 2,720.35 and the Nasdaq Composite was up 2.08 percent, at 7,310.66. The S&P communication services index, which also houses Alphabet and Netflix rose 2.03 percent.
In Bond Markets most euro zone bond yields edged higher on Wednesday after data pointed to further signs of strength in the U.S. jobs market, although nagging concerns about the economic outlook for the single currency bloc limited selling pressure. Euro zone inflation rose to 2.2 percent in October from 2.1 percent last month, holding above the European Central Bank’s target of just below 2 percent for the fifth month running. Even underlying inflation picked up. Germany’s 10-year bond yield was up 1 basis point (bp) at 0.38 percent, off session highs of 0.40 percent.