In European Equity Markets the pan-European Stoxx 600 climbed 0.23% by the closing bell, with basic resources jumping over 1.9% while utilities stocks fell around 0.8% to lead sectoral losses. In terms of individual stocks, earnings remained in focus as Pandora shares fell 17.6% after the Danish jeweler swung to an unexpected net loss in the third quarter and cut its revenue guidance, hit by weak consumer demand and political turmoil in Hong Kong. Siemens Gamesa shares declined 8.1% after the wind energy company cut its 2020 guidance and postponed its profitability targets by two years.
In Currency Markets the British pound drifted higher against the euro on Tuesday but stayed within recent trading ranges after survey data showed Britain’s services sector stagnated last month due to concerns about Brexit. Against the dollar, though, the British currency fell slightly as the greenback strengthened on a better-than-expected ISM non-manufacturing PMI. The dollar also rose versus safe-haven currencies on growing signs that the United States and China are inching closer to a trade deal. Against the dollar, the pound fell 0.1%% to $1.2865, coming off an earlier session high of $1.2904. Versus the euro, the pound edged up 0.4% up to 85.98 pence.
In Commodities Markets oil prices rose more than 1% on Tuesday on hopes for a U.S.-China trade agreement and optimism that Washington could roll back some of the tariffs it has imposed on Chinese imports. Brent crude futures for January delivery rose 88 cents, or 1.4%, to $63.01 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 76 cents, or 1.3%, to $57.30 a barrel. China is pushing U.S. President Donald Trump to remove more tariffs imposed in September as part of a so-called Phase 1 deal, which would help to ease the broad economic impact of the trade dispute between the world’s two biggest oil consumers.
In US Equity Markets stocks took a breather on Tuesday, weighed down partially by losses in healthcare stocks, after a rally driven by hopes of a trade truce between Washington and Beijing propelled the three main indexes to record highs a day earlier. The S&P 500 was down 0.12%, at 3,074.60 and the Nasdaq Composite fell slightly 0.04%, at 8,430.06. Uber Technologies Inc fell 7% after the ride-hailing service posted a bigger third-quarter loss as it tried to outspend competitors through discounts. Adobe Inc rose 3% as the Photoshop software maker raised its fourth-quarter digital media annualized recurring revenue target, boosting the Nasdaq and S&P 500.
In Bond Markets Germany’s 20-year bond yield rose into positive territory on Tuesday for the first time since July, tracking moves on debt markets across the developed world on optimism around U.S.-China trade talks and robust U.S. service sector data. Germany’s 20-year bond yield rose to 0.001%, before falling back to -0.02%. Next in line is the French 10-year bond, which is hovering close to a return to positive territory after rising as high as -0.006%.