In European Equity Markets the pan-European Stoxx 600 closed up by over 1%, with the majority of sectors and major bourses in positive territory. Autos stocks however were the best performers, rallying over 4%, buoyed by a sharp rise in Faurecia’s share price. The French auto parts maker climbed more than 11% after it maintained first-half profitability despite a China-led decline in auto production. Fellow parts makers Hella and Valeo also jumped sharply. Chip-maker stocks also saw a windfall on Tuesday, led by Apple supplier AMS.
In Currency Markets the U.S. dollar on Tuesday rose to near a five-week high against a basket of currencies after President Donald Trump and U.S. lawmakers reached a two-year deal that raises the limits on government borrowing to cover spending. The dollar’s strength also stemmed from broad weakness in the euro as investors gear up for news of fresh stimulus from the European Central Bank on Thursday. The single currency fell to $1.1150, its lowest since May 31. It held at $1.1158, down 0.45% on the day.
In Commodities Markets oil fell to around $63 a barrel on Tuesday as concerns faded for now that rising tensions in the Middle East would escalate and hit oil supplies, compounding the impact of a weaker demand outlook. Iran’s capture of a British oil tanker last week sparked worries about supply disruptions in the Strait of Hormuz, through which about a fifth of the world’s oil flows, prompting crude to rally on Monday. But oil has since pared some gains. Brent crude fell 5 cents to $63.21 a barrel on Tuesday. U.S. WTI crude was up 1
In US Equity Markets stocks rose on Tuesday, boosted by upbeat earnings and forecasts from Coca-Cola and United Technologies, while a two-year debt ceiling and budget deal between President Donald Trump and Congress buoyed sentiment. Coca-Cola Co shares rose as much as 5.7% to hit a record high, after the fizzy drink maker beat quarterly earnings expectations and raised its full-year organic revenue forecast. The S&P 500 was up 0.29%, at 2,993.82. The Nasdaq Composite added 0.15%, at 8,216.70.
In Bond Markets U.S. Treasuries yields edged higher on Tuesday as investors waited on central bank meetings for new signals about how many interest rate cuts are likely in Europe and the United States.The European Central Bank (ECB) is expected to signal easier monetary policy when it meets on Thursday. Benchmark 10-year notes fell 5/32 in price to yield 2.06%, up from 2.043% on Monday. The yields have held between 2.02% and 2.07% for four consecutive trading sessions.