In European Equity Markets the pan-European Stoxx 600 closed 0.3 percent higher on Tuesday. Basic Resources and Technology stocks led the gains.The FTSE 100 gained 0.11 percent while Germany’s DAX and France’s CAC 40 gained 0.31 percent and 0.47 percent. Air France-KLM jumped over 5 percent amid hopes of a deal with labor unions. Britain’s Sage fell towards the bottom of the index on Tuesday, down nearly 1.5 percent after Barclays cut its stock recommendation to “underweight” from “equal weight.”

 

In Currency Markets the US dollar rose on Tuesday, boosted by rising U.S. bond yields to a seven-week peak against a basket of currencies, as the euro weakened further on worries about the tension between the European Union and Italy over that country’s budget. The Chinese yuan steadied near a seven-week low against the greenback as a liquidity squeeze in the offshore yuan market in Hong Kong helped stabilize sentiment. The Chinese offshore yuan fell to 6.9350 yuan per dollar before retracing to 6.9239, which was marginally weaker on the day.

 

In Commodities Markets crude prices were modestly higher on Tuesday as nearly one-fifth of daily oil production was lost from offshore Gulf of Mexico wells due to Hurricane Michael. Coastal and onshore energy businesses also started preparations for what is expected to become a Category 3 storm packing winds of at least 111 miles per hour (178 km per hour). U.S. crude futures were up 0.8 percent at $74.88, reflecting the lesser importance of Gulf of Mexico because of the strong growth of production from the nation’s onshore shale fields.

 

In US Equity Markets the S&P 500 and the Nasdaq rose on Tuesday, boosted by a rebound in technology stocks, but gains, including on the blue-chip Dow , were kept in check by concerns on slowing global growth. The S&P 500 was up 0.10 percent, at 2,887.21 and the Nasdaq Composite rose 0.39 percent, at 7,766.03. Energy stocks were up 0.34 percent as oil prices rose on growing evidence of falling Iranian crude exports. PPG Industries fell 7.8 percent, the most on the S&P, after the specialty chemicals maker said its current-quarter profit would be hit by higher raw material costs.

 

In Bond Markets Italian government bond yields fell from multi-year highs on Tuesday after Economy Minister Giovanni Tria pledged to do whatever is necessary to restore calm if market turbulence turns into a financial crisis. In late trade, bond yields were down as much as 11 basis points. Italy’s 30-year bond yield was at 3.96 pct, having risen above four percent for the first time since August 2014. German and French 10-year yields rose one to two basis points each at 0.55 percent and 0.90 percent respectively.

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