In European Equity Markets the pan-European Stoxx 600 briefly hit an all-time high during morning trade and closed up 1% . Travel stocks jumped 1.9% to lead gains as most sectors and all major bourses remained in positive territory. Daimler shares edged 0.2% lower after the German automaker swung to a loss in the fourth quarter of 2019 and cut its dividend. NMC Health’s London-listed stock fell 17.6% after private equity firm KKR ruled at a bid for the Abu Dhabi hospital group.
In Currency Markets sterling enjoyed some respite on Tuesday after British economic growth showed no change in the fourth quarter despite market expectations that it would be slower. The currency had on Monday touched its lowest levels for this year amid uncertainty over Britain’s future trade relationship with the European Union. Sterling was last trading up 0.3% at $1.2949 after reaching as high as $1.2968. That left it still close to the 2-1/2-month low of $1.2873 it fell to on Monday.
In Commodities Markets oil rose to more than $54 a barrel on Tuesday, recovering from a 13-month low as the number of new coronavirus cases slowed in China, easing some concern over the potential for lengthy destruction of oil demand. The death toll climbed above 1,000 on Tuesday, though the number of new confirmed cases fell. Brent crude was up $1.27 at $54.44 a barrel, having fallen on Monday to its lowest since January last year at $53.11. U.S. West Texas Intermediate crude was up $1.09 at $50.66.
In US Equity Markets the S&P 500 and the Nasdaq indexes hit record highs on Tuesday as a top Chinese health adviser sparked expectations that the coronavirus outbreak may be peaking, while T-Mobile shares jumped after a federal judge approved its purchase of Sprint. The S&P 500 gained 0.43% to 3,366.58. The Nasdaq Composite was up 44.29 points, or 0.46%, at 9,672.68. T-Mobile US climbed 11.2% to the top of the benchmark S&P 500, while Sprint shares jumped 73.8%. Larger rival Verizon Communications Inc slipped 0.5%.
In Bond Markets government bond yields across the euro area rose on Tuesday in response to gains by world stock markets, but did not venture too far from recent lows in a sign of underlying investor caution. The 10-year bond yields across the bloc were up 2 basis points on the day in late trade. Germany’s benchmark Bund yield rose to -0.39% not far off a low of -0.41% hit on Monday. Elsewhere, Italy priced 9 billion euros of 15-year bonds via a syndicate of banks on the back of record demand exceeding 50 billion euros.