In European Equity Markets the pan-European Stoxx 600 pared early losses to trade 0.07% up by the close, technology stocks falling 1.1% while the banks and oil & gas stocks both gained 2.1%. Britain’s JD Sports rose 9.3% to top the Stoxx 600 after strong first half results, defying the weakness of the U.K. high street to raise profits. Just Eat shares fell 6.2% during trade, while French utility company EDF fell 7.6% after its majority-owned nuclear reactor business Framatome found a deviation from technical standards governing the welding of some of its components used in nuclear reactors.
In Currency Markets the U.S. dollar firmed against the euro on Tuesday but held in its tight recent range before the European Central Bank on Thursday is expected to cut interest rates deeper into negative territory and possibly restart asset purchases. The dollar was last up 0.07% against the single currency at $1.1038. It has traded in a tight range between $1.1014 and $1.1084 for four days. The Japanese yen weakened to its lowest level against the greenback since Aug. 2.
In Commodities Markets oil futures rose on Tuesday to their highest levels in almost six weeks on optimism that OPEC and other producing countries will agree to extend output cuts to support prices. Brent was up 67 cents or 1.07% at $63.26 a barrel, while U.S. West Texas Intermediate (WTI) futures were up 63 cents, or 1.09%, at $58.48 a barrel. Brent reached its highest level since Aug. 1, while U.S. crude rose to its highest since July 31. In the United States, crude stockpiles are likely to have fallen for a fourth consecutive week last week, a preliminary Reuters poll showed on Monday.
In US Equity Markets stocks fell in morning trading on Tuesday as weak economic data from China added to fears of a global recession and pushed investors out of riskier technology stocks. Microsoft Corp was the biggest drag on the S&P 500 for the second straight session. Losses in Visa Inc and Mastercard Inc pulled the tech sector 1.51% lower. Healthcare stocks were down 1.26%. The S&P 500 was down 0.69%, at 2,957.75 and the Nasdaq Composite was down 0.96%, at 8,010.14. Ford Motor Co fell 3.4% after ratings agency Moody’s downgraded its bonds to junk status overnight.
In Bond Markets U.S. Treasury yields climbed to fresh three-week peaks on Tuesday, tracking German bonds, as risk appetite continued to improve amid diminishing U.S.-China trade tensions and expectations of fiscal stimulus measures from Germany, Europe’s largest economy. U.S. benchmark 10-year note yields rose to 1.643% from 1.622% late on Monday. Early in the session, 10-year yields hit a three-week high of 1.658%. Since the beginning of the year, however, 10-year yields have fallen more than 100 basis points.