In European Equity Markets the pan-European Stoxx 600 finished up around 0.3 percent at the closing bell, with most sectors and all major bourses in positive territory. Europe’s health care sector led the gains, while autos was also higher. Britain’s Hays rose on Tuesday after reporting an 8 percent increase in quarterly net fees. Shares of the staffing company were up around 4.4 percent higher on the news. Italian banks fell toward the bottom of the index, after reports suggested the ECB could be set to ask Rome’s lenders to set aside further capital to deal with impaired loans.
In Currency Markets sterling fell from a two-month high versus the dollar on Tuesday and volatility levels spiked as markets braced for parliament to give the thumbs-down to British Prime Minister Theresa May’s Brexit deal later in the day. In a voting session due to start at 19:00 GMT members of parliament will vote on May’s plan but her recent efforts to win support for the deal look set to fail, despite her warnings that rejection of the deal could lead to Britain staying in the European Union. The pound had slipped 0.3 percent on the day at $1.2837.
In Commodities Markets oil prices rose around 2 percent on Tuesday amid production cuts by OPEC and Russia as well as signs of lower U.S. oil stocks, but grim Chinese economic data raised fears for global growth. Brent was up $1.13 or 1.92 percent at $60.12 per barrel. U.S. crude was up $1.07 or 2.12 percent at $51.58. The Middle East-led Organization of the Petroleum Exporting Countries and other producers including Russia agreed in late 2018 to cut supply starting this month, seeking to rein in a global glut.
In US Equity Markets stocks rose on Tuesday, as hopes of more stimulus for China’s slowing economy and a jump in Netflix shares helped investors look past disappointing earnings from JPMorgan and Wells Fargo. Netflix Inc jumped 6.12 percent after the video streaming service pioneer said it was raising prices for its U.S. subscribers. The S&P 500 was up 0.71 percent, at 2,600.82 and the Nasdaq Composite rose 1.20 percent, at 6,988.87. Eight of the 11 major S&P sectors were higher, led by a 1.41 percent gain for the healthcare sector.
In Bond Markets Euro zone government bond yields fell to six-month lows on Tuesday as the German statistics office said the country had escaped a recession but still recorded its slowest growth in half a decade in 2018. Germany’s 10-year bond yield, the benchmark for the region, was 2 bps lower at 0.21 percent. France’s 10-year bond yield dropped a basis point to 0.613 percent, a new six-month low. Long-dated bond yields in Belgium and Ireland also hit six-month lows at 0.665 percent and 0.8 percent respectively.