In European Equity Markets stocks traded lower Tuesday as a warning of an autos slowdown from German chemicals giant BASF dragged down autos and chemicals companies. The pan-European Stoxx 600 fell 0.6% during afternoon trade, with autos stocks shedding nearly 2% as the vast majority of sectors traded in negative territory. Deutsche Bank workers began to leave offices in New York, London, Sydney and Tokyo Monday as the German lender started to slash 18,000 jobs in a 7.4 billion euro ($8.3 billion) restructure. The bank’s shares fell 4%.
In Currency Markets the euro fell below $1.12 to a three-week low against a stronger dollar on Tuesday as investors re-assessed their expectations of how much the Federal Reserve may cut interest rates by this month. The nomination of IMF Chairwoman Christine Lagarde as the new head of the European Central Bank added to market participants’ worries that the ECB would be inclined to ease monetary policy faster than its U.S. counterpart. The common currency fell to its lowest since mid-June at $1.1193.
In Commodities Markets oil edged further above $64 a barrel on Tuesday as OPEC supply cuts and Middle East tensions countered the U.S.-China trade dispute that has been dragging down the global economy and oil demand. OPEC and its allies led by Russia agreed last week to extend their supply-cutting deal until March 2020. Brent has risen almost 20% in 2019 supported by the pact and also tensions in the Middle East, especially concerns about the row over Iran’s nuclear program. Brent crude rose 15 cents to $64.26 a barrel. U.S. WTI crude was up 9 cents to $57.75.
In US Equity Markets stocks fell modestly on Tuesday as investors fretted over a hit to company earnings from the protracted U.S.-China trade dispute and reined in expectations of a big interest rate cut by the Federal Reserve later this month. The S&P 500 was down 0.23%, at 2,969.18 and the Nasdaq Composite fell 0.13%, at 8,088.16. Network gear maker Cisco Systems Inc fell 0.4% on a deal to buy optical component maker Acacia Communications Inc for $2.84 billion in cash. Acacia’s shares jumped 34.9%.
In Bond Markets U.S. Treasury yields climbed on Tuesday morning amid reported progress in Washington’s trade talks with both Beijing and Brussels. Yields at the long end of the curve moved more than those at the short end, tempering a curve flattening trend as the market awaited Federal Reserve Chair Jerome Powell’s congressional testimony on Wednesday which will be mined for insight into the expected interest rate cut in July. The benchmark 30-year Treasury bond yield was last up 2.6 basis points to 2.54%, approaching levels hit Friday.