Closing Market 2015-12-15

In European Equity Markets stocks bounced back on Tuesday from sharp declines in the previous two sessions as energy stocks tracked higher crude oil prices and steel makers gained following a European Commission move on Chinese and Russian steel imports. The pan-European FTSEurofirst 300 index ended 2.9 percent higher at 1,411.68 points, while the euro zone’s blue-chip Euro STOXX 50 index advanced 3.3 percent. The French CAC-40 equity index was up 3.2 percent. The Paris market was helped by pharmaceuticals group Sanofi , which climbed 5.3 percent after it said it would swap some assets with Boehringer Ingelheim. There was also a 7 percent surge in car parts company Faurecia after it agreed to sell a division to Plastic Omnium.

In Currency Markets  the U.S. dollar rebounded from a roughly six-week low against the euro on Tuesday after data showed inflation pressures rose in the United States in November, cementing expectations for a hike in interest rates by the Federal Reserve on Wednesday. The euro fell from a roughly six-week high of $1.10600 hit earlier in the session to a session low of $1.09340 after Labor Department data showed that the U.S. core Consumer Price Index rose 2.0 percent in the 12 months through November, marking the largest gain since May 2014. The dollar index was last up 0.5 percent at 98.095 after hitting a nearly six-week low of 97.190. The dollar was last up 0.39 percent against the yen at 121.515 yen.

In Commodities Markets   oil rebounded by 1 percent on Tuesday, halting a slide to 11-year lows, but traders said they expected no more than fleeting support for crude in an oversupplied market and ahead of a forecast U.S. rate hike that could send the dollar rallying.  Brent was up 1 percent, at $38.32 a barrel. It came within 14 cents of snapping its December 2008 low of $36.20 on Monday. WTI was 50 cents higher at $36.81. It fell to $34.53 a day ago, hovering above its financial crisis low of $32.40. Credit ratings agency Moody’s said it had lowered its 2016 Brent crude oil estimate to $43 a barrel from $53 on the outlook for prolonged oversupply as additional production from Iran would offset any slowdown in U.S. output.

In US Equity Markets  Wall Street was on track for a second day of gains on Tuesday as energy stocks rose in tandem with recovering oil prices, and a day before a widely expected interest-rate hike by the FED in nearly a decade.  Bank stocks rose on the expectation of improving interest income from higher rates, with Goldman Sachs’ 2.6 percent rise providing the biggest boost to the Dow. JP Morgan, Morgan Stanley, Citigroup and Bank of America were up about 2.5 percent. Valeant shares were up 14.2 percent after the Canadian drugmaker signed a distribution deal with Walgreens. 3M was down 4.4 percent after cutting its 2015 profit outlook. The S&P 500 was up 1.25 percent, at 2,047.26 and the Nasdaq Composite index was up 1.25 percent, at 5,014.26.

In Bond Markets  U.S. Treasuries prices fell on Tuesday as gains on Wall Street reduced interest in safe-haven bonds and stable consumer prices supported views that the Federal Reserve will raise interest rates on Wednesday. U.S. 10-year notes fell 13/32 in price to yield 2.227 percent, up from 2.225 percent late on Monday. The 10-year yield hit a session high of 2.289 after the CPI data was released. The 30-year bond fell 25/32 in price to yield 3.001 percent, up from 2.962 percent late on Monday. Its yield rose to a session high of 3.019 percent.


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