In European Equity Markets indexes rose to new highs on Tuesday after U.S. senators struck a deal to end a three-day government shutdown, while earnings updates were also in focus. Euro zone stocks reached their highest in a decade, with Germany’s DAX jumping to a fresh record of just over 13,596 points. The DAX ended 0.7 percent higher, while the pan-European STOXX 600 closed the session up 0.1 percent. Carrefour touched a five-month high with a 3.2 percent rise. Bernstein analysts said the strategic plan “ticks all the right boxes”. Shares in computer peripherals and mobile speaker maker Logitech were the biggest gainers, jumping 8 percent after it reported better than expected sales and raised its guidance. Easyjet was another strong riser, up 5.1 percent, after reporting first-quarter results.
In Currency Markets the US dollar slipped to a fresh three-year low against a basket of currencies on Tuesday after data showed euro zone consumer confidence jumped much more than expected in January, underlining the strong momentum in the euro zone economy. The dollar index, which measures the greenback against six rival currencies, was down 0.34 percent at 90.094, after slipping as low as 90.096, its lowest since December 2014. The European Commission said consumer confidence in the 19 euro zone countries in January rose to 1.3 points from 0.5 point in December, well above the market consensus of a rise to 0.6. The euro was up 0.33 percent to $1.23 against the greenback. The British pound pushed above the $1.40 mark, extending its recent rally.
In Commodities Markets oil rose more than 1 percent on Tuesday with benchmark Brent crude above $70 a barrel for the first time in a week on Tuesday, boosted by healthy world economic growth prospects and expectations for continued production curbs by OPEC, Russia and their allies. Brent crude futures were up $1.06 at $70.09 a barrel, not far off the three-year high of $70.37 reached on Jan. 15. U.S. West Texas Intermediate (WTI) crude futures rose $1 to $64.59 a barrel. WTI reached its highest since December 2014 on Jan. 16 at $64.89. U.S. Energy Department oil inventory figures will be released Wednesday morning; industry group the American Petroleum Institute will issue data on stocks Tuesday afternoon at 4:30 p.m. EST. Silver was down 0.6 percent at $16.91 an ounce. Palladium was 0.9 percent lower at $1,088 an ounce.
In US Equity Markets the S&P and the Nasdaq rose on Tuesday as upbeat earnings from Netflix pushed gains for the highly-valued technology sector, while the Dow came under pressure from declines in Johnson & Johnson and Procter & Gamble. Netflix jumped over 11 percent to a record high of $257.71 and surpassed $100 billion in market value, after the video-streaming pioneer beat estimate targets for new subscribers in the fourth quarter. Insurer Travelers was the biggest gainer on the Dow, rising 3.8 percent after the company’s profit topped estimates. The S&P 500 was up 0.20 percent, at 2,838.77. The Nasdaq Composite rose 0.57 percent, at 7,449.90. Procter & Gamble fell about 3 percent as investors focused on a drop in gross margins at the world’s largest consumer goods maker.
In Bond Markets the premium investors demand for holding Spanish bonds over benchmark German peers fell to its lowest level since 2010 on Tuesday as recent ratings upgrades for Spain and Greece, and solid demand at Spanish bond sale, bolstered sentiment. Over 45 billion euros worth of demand for a new 10-year Spanish bond helped push 10-year yields to seven-month lows , in what could be potentially the largest ever order book for a European bond sale. Portuguese 10-year bond yields hit their lowest since 2015, Italian peers fell to one-month lows , and short-dated Greek bond yields hit record lows. Spain’s 10-year bond yield hit a seven-month low of 1.34 percent, taking its falls over the past three sessions to 12 bps. Portuguese bond yields fell 6 bps, their lowest since April 2015 at 1.66 percent.