In European Equity Markets the pan-European Stoxx 600 closed up 0.6%. Markets had traded lower earlier in the session. Trade-sensitive sectors like autos and basic resources were among the biggest gainers. In terms of individual stocks, steel and mining giant ArcelorMittal saw its shares climb sharply following the USTR’s announcement. The stock was up over 5%. SalMar was the top performer in Europe, climbing almost 7% after DNB upgraded the Norwegian fish farm company to hold from sell.


In Currency Markets sterling held near a 2-1/2 year low on Tuesday as concerns about a no-deal Brexit dominated sentiment despite data showing wage growth in the United Kingdom rose to an 11-year high. Against the dollar, the pound edged 0.1% lower at $1.2066 while it was broadly steady against the euro at 92.79 pence. Strong labour data could put pressure on the Bank of England to hold interest rates. Presently, money markets give a 68% chance of a one quarter point rate cut by end-December.


In Commodities Markets oil prices rose over 3% on Tuesday after the United States said it will delay imposing a 10% tariff on certain Chinese products, easing concerns over a global trade war that has pummelled the market in recent months.  Those Chinese products include laptops and cell phones. Brent futures were up $2.08, or 3.6%, to $60.65 a barrel, while U.S. West Texas Intermediate crude was up $1.86, or 3.4%, to $56.79. Prior to Tuesday’s gain, Brent was trading down more than 20% since hitting its 2019 high in April.


In US Equity Markets stocks jumped more than 1.5% on Tuesday after the Trump administration said it would delay 10% tariffs on some Chinese products, including laptops and cell phones, driving a 4% rally in shares of iPhone maker Apple Inc. The S&P 500 was up 1.54%, at 2,927.35. The Nasdaq Composite was up 1.94%, at 8,015.97. A 4.2% jump in shares of Apple, which makes iPhones and MacBooks in China, along with a rise in chip stocks pushed the technology sector 2.24% higher. The Philadelphia chip index rose 3.16%.


In Bond Markets Euro zone government bond yields fell on Tuesday, with Germany’s 10-year benchmark reaching new lows, as concerns ranging from Brexit to turmoil in Hong Kong and uncertainty in Italy drove investors into safe-haven assets. In late trade, Germany’s 10-year bond yield was down 2 basis points at -0.61%, close to record lows. It rose briefly on the news that the United States would remove some products from a list of tariffs on Chinese goods. Italian yields were down as much as 12 bps across the curve, falling for the second straight day.

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