In European Equity Markets M&A activity was on top of a choppy European trading session on Tuesday as Comcast made a surprise counter-bid for pay-TV group Sky. The pan-European STOXX 600 closed down 0.2 percent at 382.26 points. Shares in Sky jumped more than 20.5 percent on the back of Comcast’s $31 billion offer, which could scupper Fox’s plan to buy out Sky and sell it to Walt Disney. Europe’s media index was the top-performing sector, up 1.2 percent at a one-month high while banks, which typically benefit from rising rates, added 0.5 percent on average. Corporate results were also in focus, with UK housebuilder Persimmon advancing 4.6 percent after it reported a jump in full-year earnings and a higher reservations rate and boosted its interim dividend.

In Currency Markets the US dollar added to gains against a basket of major currencies on Tuesday after Federal Reserve Chairman Jerome Powell told U.S. lawmakers the central bank would stick with gradual interest rate increases despite the added stimulus of tax cuts and government spending. The dollar index, which measures the greenback against a basket of six other major currencies, was up 0.26 percent at 90.089. The dollar was up 0.19 percent against the Japanese yen at 107.11 yen. The euro was down 0.26 percent against the dollar at 1.2284. Italians vote in a national election on Sunday, while the leading political parties in Germany will decide on a coalition deal that could secure Angela Merkel a fourth term as chancellor.

In Commodities Markets oil fell on Tuesday before weekly data that is forecast to show rising U.S. crude inventories, although investor confidence in OPEC’s ability to curb output helped stem the price slide. Brent crude futures eased 6 cents to $67.44 a barrel, while U.S. West Texas Intermediate crude fell 12 cents to $63.79. The American Petroleum Institute releases its weekly figures on U.S. crude inventories later on Tuesday. Stocks are forecast to have risen by 2.7 million barrels last week, according to a Reuters poll. Inventories have fallen by more than 100 million barrels, or a quarter, in the last 12 months, to their lowest in three years. Seasonally, stocks tend to build in the first three months of the year. U.S. output was 10.27 million barrels per day (bpd), higher than the latest figures for the world’s largest exporter Saudi Arabia and just below Russia.

In US Equity Markets main indexes fell in choppy trading on Tuesday as U.S. bond yields rose after new Fed Chairman Jerome Powell said the economy was strengthening and that inflation would rise. The S&P 500 was down 0.25 percent, at 2,772.52 and the Nasdaq Composite was down 0.39 percent, at 7,392.50. Stocks have recovered much of their losses from the early February sell-off, when they shed more than 10 percent. In a big week for retail earnings, Macy’s reported higher-than-expected same-store sales growth for the fourth quarter. Its shares jumped 11 percent. Luxury builder Toll Brothers’ shares rose 1.2 percent after it reported quarterly profit that beat analysts’ estimates as it sold more homes at higher prices. Fitbit fell  more than 10 percent after the wearable device maker forecast current-quarter results below estimates.

In Bond Markets Italian government debt outperformed euro zone peers on Tuesday as investors snapped up the country’s last bonds to be auctioned before an election this weekend, while comments from the new Fed chief Jerome Powell eased broader markets. Euro zone bond yields initially rose after the comments but soon trimmed those rises in line with U.S. bond yields. In Europe, Italy remained a key focus. The southern European country, which goes to the polls on Sunday, sold around 7.71 billion euros of debt. Italy’s 10-year bond yield was 2 basis points lower at 2.09 percent, while most other long-dated euro zone bond yields were flat to 1 basis points higher on the day.