In European Equity Markets stocks finished modestly higher Tuesday after Britain’s top court ruled the U.K. government must consult lawmakers before starting the Brexit process. The pan-European STOXX 600 index still managed to eke out a 0.2 percent gain, though, propped up by Italian financials and mining stocks. BT lost a fifth of its market value, hit by an Italian accounting scandal that has compounded a sudden slowdown in its British government work and forced the telecoms group to cut forecasts for the next two years. Shares in the company tumbled by 20.8 percent to 303 pence, their biggest ever one-day fall. Italy’s index was the standout performer, up 0.9 percent as Generali’s biggest shareholder Mediobanca also rallied 5.6 percent.

In Currency Markets the U.S. dollar firmed against the yen and euro on Tuesday, after several days of losses in the wake of President Trump’s inaugural speech promising more trade protectionism, with the U.S. economic outlook still seen better than that of Europe or Japan. Against the yen, the dollar rose 0.6 percent to 113.31 yen on Tuesday. The euro has recovered above $1.07 and hit seven-week highs of $1.0774 in early Asian trading on Tuesday. Sterling fell 0.5 percent to $1.2465 after Britain’s Supreme Court ruled that the government would need approval from Britain’s parliament before formally triggering the country’s departure from the European Union.

In Commodities Markets oil prices climbed higher on Tuesday ahead of weekly U.S. inventory data on evidence the global market is tightening as lower production by OPEC and other exporters drains stocks. Brent futures were up 0.7 percent at $55.60 a barrel, while U.S. West Texas Intermediate rose 1 percent, to $53.28 per barrel. Spot gold was down 0.3 percent at $1,214.53 an ounce after peaking at $1,219.59. U.S. gold futures fell 0.2 percent to $1,213. Silver lost 0.3 percent to $17.13 per ounce, while platinum gained 0.6 percent to $982.7. Palladium was up 0.4 percent at $781 an ounce after hitting $795.60, its highest since May 2015, in the previous session.

In US Equity Markets stocks edged higher on Tuesday, led by technology and materials stocks, as the corporate earnings season kicked into high gear. The S&P 500 was up 0.23 percent, at 2,270.42 and the Nasdaq Composite was up 0.25 percent, at 5,566.75. Speaking to chief executives of General Motors, Ford and Fiat Chrysler, Trump said he wanted to see new auto plants built in the United States, while reiterating his plans to cut taxes and regulations. GM and Ford’s stocks rose more than 1 percent, while Fiat Chrysler was up 5.5 percent. Yahoo rose 3.3 percent after the company reported better-than-expected quarterly profit and revenue and said the sale of its core internet business to Verizon should be completed in the second quarter.

In Bond Markets U.S. Treasury yields rose on Tuesday, in step with their European counterparts, following a high court ruling on Britain’s decision to bolt from the European Union and encouraging data on euro zone manufacturing data. The yield on benchmark 10-year Treasury notes was up 3 basis points at 2.428 percent. German 10-year Bund and British 10-year Gilt yields were up over 2 basis points.

European Equity Earnings
SAP (SAP GY) – Co. Q4 Non-IFRS EPS EUR 1.52 vs. Exp. EUR 1.41, Non-IFRS revenue EUR 6.72bln vs. Exp. EUR 6.68bln, Non-IFRS Op Profit EUR 2.37bln vs. Exp. EUR 2.38bln. Additionally, Co. boosted revenue guidance.
Eurotunnel (GET FP) – Q4 Rev EUR 237.7mln vs. Prev. EUR 266.2 Y/Y, Q4 LFL +5%, Q4 truck shuttles +8% Y/Y, Car shuttle +6% Y/Y.
Philips (PHIA NA) – Co. reports Q4 Net Profit of EUR 640mln vs. a Prev. loss of EUR 39mln Y/Y, and revenue EUR 7.2bln vs. Exp. EUR 7.3bln. Elsewhere, the Co. are going through civil case in US, which could impact their defibrillator business.
Huber & Suhner (HUBN VX) – Co. reports FY16 revenue rose 4.4% Y/Y to CHF 737mln.
easyJet (EZJ LN) – Co. Q1 revenue rose 7.2% to GBP 997mln, while revenue per seat for H1 is expected to decline by the high single digits. Additionally, weakness of GBP is expected to impact Co.’s Y/Y PBT for FY17 by around GBP 105mln.
IG Group (IGG LN) – H1 pretax GBP 105.2bln, Net trading rev GBP 244.9mln vs. GBP 214.9.

European Equity Upgrades/Downgrades
WILLIAM HILL (WMH LN) DOWNGRADED TO SELL FROM NEUTRAL AT UBS
RATIONAL AG (RAA GY) UPGRADED TO BUY FROM HOLD AT HSBC
PARTNERS GROUP (PGHN VX) DOWNGRADED TO SELL FROM NEUTRAL AT GOLDMAN SACHS
NORDEA BANK (NDA SS) UPGRADED TO OUTPERFORM FROM SECTORPERFORM AT RBC
SEB (SEBA SS) DOWNGRADED TO UNDERPERFORM FROM SECTORPERFORM AT RBC