In European Equity Markets stocks fell on Tuesday after two sessions of strong gains, with disappointment over a deal to tackle a global oil supply glut weighing on sentiment. The pan-European FTSEurofirst 300 index fell 0.6 percent. Euro zone’s bluechip index Eurostoxx 50 index fell 0.49 percent. Banks were led lower by Standard Chartered, which fell 6.2 percent after several brokerages cut their target prices following a recent rally. Elsewhere in the sector, Commerzbank and Deutsche Bank fell 2 and 0.7 percent respectively. Shares in oil stocks came off highs but most remained in positive territory. BP and Total advanced 1.6 percent and 0.4 percent respectively, while Eni fell 0.75 percent.
In Currency Markets the yen bounced back against the dollar on Tuesday, as a modest recovery in risk appetite fizzled after top oil producers Saudi Arabia and Russia agreed to freeze (but not cut) output. The dollar fell 0.6 percent on the day to 113.98 yen. The euro was flat at $1.1158, down from last week’s four-month high of $1.1377. Commodity-linked currencies such as the Canadian and Australian dollars pared earlier gains, though they were still up on the day. New Zealand’s dollar fell as much as 1 percent to a one-week low of $0.6581 after two-year inflation forecasts fell to their lowest since 1994, fuelling expectations of more easing from the central bank.
In Commodities Markets crude oil prices turned lower Tuesday morning, as investors decided that talk of an agreement to freeze oil output wasn’t sufficient to alleviate a global supply glut that has dogged the market. West Texas Intermediate crude for March delivery fell 1.7 percent to $28.95 a barrel, after trading as high as $31.53 a barrel in electronic trading. Brent crude hit a 12-day high of $35.55 a barrel after Russia, Saudi Arabia, Qatar and Venezuela agreed to freeze output to tackle a global oil glut if other major exporters joined them. It last traded at $33.82, up 44 cents on the day. Gold, which had its best week in four years last week, earlier fell to $1,199 an ounce but last traded at $1,1213.
In US Equity Markets stocks were higher on Tuesday morning, extending a rally from Friday, as cautious investors looked for bargains among beaten-down stocks. The S&P 500 was up 0.72 percent, at 1,878.2 and the Nasdaq Composite was up 1.22 percent, at 4,390.59. Nine of the 10 major S&P sectors were higher, with the consumer discretionary index’s 1.07 percent rise leading the advancers. Groupon rose 33.4 percent after Alibaba disclosed a 32.9 million stake in the company. Alibaba was up 6.7 percent. Community Health Systems lost 28.9 percent and weighed on other hospital operators after posting an unexpected quarterly loss. Tenet Healthcare’s 8.7 percent fall was the biggest on the S&P 500.
In Bond Markets U.S. Treasury debt prices fell on Tuesday as gains on Wall Street stocks trimmed safehaven demand for bonds, lifting benchmark yields further from their near 3-1/ 2 years lows set last week. Benchmark 10-year Treasury notes were down 7/32 in price for a yield of 1.772 percent, up 3 basis points from late on Friday. The 30-year bond last traded 24/32 lower in price, yielding 2.641 percent, up 4 basis points from Friday.