In European Equity Markets a flurry of results for heavyweight mining stocks and a decrease in Provident Financial shares injected some energy into stocks on Tuesday, with the region’s benchmark indexes ending a three-day losing streak. The pan-European STOXX 600 rose 0.8 percent, having fallen close to a five-month low in the previous session, while euro zone blue chips gained 0.9 percent, also supported by a weaker euro. Europe’s basic resources sector enjoyed a second session of gains and was the top-gaining sector, up 1.7 percent, supported by a rally in iron ore prices. UK subprime lender Provident Financial shed 66 percent after it issued its second profit warning in two months, canceled its dividend and said that its chief executive was leaving.
In Currency Markets the dollar rallied on Tuesday after falling for two straight days, benefiting from the euro’s decline following weaker-than-expected euro zone data as well as investors adjusting positions ahead of a global central bankers’ conference later this week. The Mannheim-based ZEW research institute said its monthly survey showed its economic sentiment index fell to 10.0 from 17.5 in July. The euro slid 0.6 percent against the greenback to $1.1764, retracing most of its overnight gains when it posted its biggest single day rise so far this month. Against Japanese yen, the dollar rose 0.42 percent to 109.43 yen, while sterling lost 0.62 percent to $1.2882. The dollar index rose 0.4 percent against a trade-weighted basket of its currencies to 93.492.
In Commodities Markets oil inched up on Tuesday, lifted by expectations of another crude stockpile drawdown in the United States but price gains were limited amid the reopening of Libya’s largest oil field. Brent crude rose 0.7 percent, at $52.02 a barrel. U.S. crude futures for September delivery was 36 cents higher at $47.73 while the more active October contract was up 42 cents at $47.95. Spot gold was down 0.2 percent at $1,288.39 an ounce. U.S. gold futures slid 0.5 percent to $1,290.60 an ounce. Silver gained 0.6 percent to $17.07 an ounce and platinum fell 0.3 percent to $974.8. Palladium was down 0.4 percent at $934.75.00 an ounce, after earlier touching $940.
In US Equity Markets stocks were higher in late morning trading on Tuesday, with the three major indexes poised for their best one-day percentage gains in more than a week, led by a bounce in technology and materials companies. The Dow Jones Industrial Average was up 0.61 percent, at 21,835.84, the S&P 500 was up 0.66 percent, at 2,444.45. The Nasdaq Composite was up 1.01 percent, at 6,275.99. Nine of the 11 major S&P sectors were higher, with the heavyweight tech index up 1.2 percent. Freeport jumped 3.9 percent on news that Indonesia expects to strike an agreement this month to allow the miner to keep operating its copper mine in Papua. Macy’s was up more than 4 percent after announcing a restructuring and job cuts.
In Bond Markets U.S. Treasury yields rose on Tuesday as investors waited on speeches by top central bankers this week for further signals about monetary policy, and with no major economic data. Benchmark 10-year notes were last down 8/32 in price to yield 2.21 percent, up from 2.18 percent on Monday. Italy’s 10-year bond yield, which moves inversely to the price, climbed 8 basis points to a three-week high at 2.11 percent, its biggest daily rise in a month.