In European Equity Markets stocks ended Tuesday on the backfoot as losses among defensive consumer staples and real estate stocks outweighed strength in autos and miners. The pan-European STOXX 600 was down 0.7 percent at its close, while euro zone stocks and blue-chips fell 0.4 percent. Consumer staples including food and drink companies and household goods weighed, with real estate stocks also falling 1.2 percent. Auto stocks were a bright spot, up 1 percent, after data showed Chinese passenger car sales rose. Marks & Spencer reported a rise in full-price sales, but its shares fell 4.7 percent, partly on the back of underwhelming food sales.
In Currency Markets the dollar edged higher against a basket of currencies on Tuesday and touched a four-month high against the yen on the back of a 25 basis-point rise in 10-year U.S. government bond yields over the past two weeks. The greenback was up 0.32 percent to 114.4 yen, after hitting 114.47 yen, its highest since March 15, earlier in the session. The Canadian dollar fell against its U.S. counterpart as oil prices fell and traders await an interest rate hike decision by the Bank of Canada on Wednesday. Sterling fell to a near two-week low against the dollar and the euro after a speech by BOE Deputy Governor Ben Broadbent left the outlook for interest rates unanswered.
In Commodities Markets oil prices rose almost 2 percent on Tuesday along with rising gasoline and heating oil futures after a report showed European product stockpiles fell despite an increase in refinery crude runs. Benchmark Brent futures were up 1.8 percent, at $47.72 a barrel, while U.S. West Texas Intermediate crude was up 1.9 percent, at $45.22 per barrel. U.S. heating oil futures were also up almost 2 percent at midday. Gold for August delivery lost 0.3 percent, to trade at $1,210.10 an ounce. Silver for September shed 0.2 percent, to $15.60 an ounce, pulling back after Monday’s 1.3 percent rise.
In US Equity Markets stocks swung lower on Tuesday after President Donald Trump’s eldest son released an email chain, which referred to a top Russian government prosecutor as offering the Trump campaign damaging information about Democratic rival Hillary Clinton. The Dow Jones industrial average was down 0.51 percent, at 21,300.15, the S&P 500 was down 0.508769 percent, at 2,415.08 and the Nasdaq Composite was down 0.31 percent, at 6,157.55. Snap Inc shares fell 5.6 percent on Tuesday, after lead underwriter Morgan Stanley downgraded the stock and raised concerns about the social media company’s ability to compete against rival Instagram.
In Bond Markets U.S. Treasury yields were flat to slightly higher on Tuesday in choppy trade, tracking modest gains in Europe, as investors focused on upcoming congressional testimony from Federal Reserve Chair Janet Yellen that could shed more light on the pace of U.S. interest rate hikes. In midday trading, the benchmark 10-year Treasury note yielded 2.373 percent , up slightly from 2.371 percent late on Monday. U.S. 30-year yields were at 2.925 percent, compared with Monday’s 2.923 percent.