In European Equity Markets the pan-European Euro Stoxx 600 index closed half a percent higher, with all major bourses in positive territory. Oil and gas stocks led the gains, boosted by commodity prices ticking higher. The sector closed 1.4 percent above the flat line. The industrials and technology sectors also both ended trade above 1 percent. Ratings upgrades helped European shares, with Airbus, Atos and Hugo Boss all rising higher after positive research notes from investment banks.
In Currency Markets the US dollar neared a six-month high against the safe-haven Japanese yen on Tuesday as investors bought riskier assets, encouraged by signs that trade tensions have yet to hurt economic momentum. Against the Japanese yen, a currency usually bought in times of geopolitical uncertainty, the greenback was up 0.5 percent at 111.35 yen, approaching a six-month high. Turkey’s lira made up some of the Monday’s losses, last at $4.685. The currency had fell to $4.752 after President Tayyip Erdogan named his son-in-law as Treasury and Finance minister on Monday.
In Commodities Markets oil prices rose by over 1 percent toward $79 per barrel on Tuesday due to growing supply outages, with Norway shutting one oilfield as hundreds of workers began a strike and Libya saying its production more than halved in recent months. Benchmark Brent oil futures rose by 96 cents, or 1.2 percent, to $79.03 per barrel by 1147 GMT. They earlier hit an intra-day high of $79.29. Brent gained 1.2 percent on Monday. U.S. light crude futures were up 35 cents, or 0.5 percent, at $74.20.
In US Equity Markets stocks rose on Tuesday, with the S&P 500 hitting a four-month high, as energy companies got a lift from firming oil prices and strong results from PepsiCo signaled a flying start to the second-quarter earnings season. PepsiCo’s shares jumped 3.7 percent and were poised for their biggest one-day jump in nearly seven years, after the company’s second-quarter results topped estimates on strong sales of snacks. The S&P 500 was up 6.60 points, or 0.24 percent, at 2,790.77. Nasdaq Composite was up 7.29 points, or 0.09 percent, at 7,763.49.
In Bond Markets the U.S. yield curve flattened to its tightest spread since 2007 on Tuesday ahead of an afternoon auction for 3-year notes. The Federal Reserve will sell $33 billion worth of 3-year notes in an auction that will close at 1 p.m. EDT (17:00 GMT) on Tuesday. An additional $22 billion in 10-year notes is scheduled for Wednesday and $14 billion in 30-year bonds will be offered on Thursday. Yields were up slightly across the board, with benchmark U.S 10-year note trading at 2.871 percent, up 1 basis point from Monday’s close.