European Close Market Briefing – 08/08/2017 – by Arjun Lakhanpal

August 9, 2017 by

In European Equity Markets stocks turned positive after a damp start on Tuesday as strong gains in utilities, auto and energy stocks outweighed losses from Pandora after disappointing results. Investors pointed to strong earnings growth as the second-quarter results season powered on. The pan-European STOXX 600 index was up 0.2 percent, while blue chips rose 0.4 percent. Britain’s FTSE 100 was also up 0.2 percent, and Germany’s DAX gained 0.3 percent. Results hit shares in jewelry maker Pandora, which lost 14 percent after second quarter results lagged estimates. German power plant and energy trading group Uniper gained around 3.4 percent after it lifted its outlook for operating profit and dividend.

In Currency Markets the dollar shook off early weakness to rise to more than a one-week high on Tuesday, after data showed U.S. job openings rising to a record high in June. The euro was down 0.43 percent to $1.1742 on Tuesday, close to last week’s 2-1/2-year highs.  Sterling hit a 10-month low against the euro as investors grew more bearish about Britain’s economic outlook after consumer spending fell for a third month in a row in July. The Canadian dollar steadied against its U.S. counterpart, holding near a three-week low set the day before, as oil prices fell and data showed slower Chinese and German trade growth. The dollar index was up 0.34 percent to 93.745.

In Commodities Markets oil prices fell on Tuesday, pulling back from recent gains as exports from key OPEC producers rose and despite news of lower crude shipments from Saudi Arabia. Benchmark Brent crude was down 21 cents a barrel at $52.16 a barrel. U.S. light crude was 20 cents lower at $49.19 a barrel. Crude oil exports from the OPEC hit a record in July, largely because of gains in Nigeria and Libya, two countries that are exempt from the agreement to limit production that is slated to continue through March 2018.  Spot gold was down 0.3 percent at $1,253.70 per ounce. Silver inched up 0.4 percent to $16.30 per ounce. Platinum was 0.7 percent higher at $970.50 per ounce and palladium rose 0.7 percent to $892.47 per ounce.

In US Equity Markets stock indexes reversed course to trade higher on Tuesday morning, with the Dow and the S&P hitting a new record, helped by a rise in Apple’s shares. The Dow Jones Industrial Average was up 0.19 percent, at 22,160.09, the S&P 500 was up 0.18 percent, at 2,485.45. The Nasdaq Composite was up 0.22 percent, at 6,397.68. Seven of the 11 major S&P sectors were higher, with the financial index’s 0.40 percent rise leading the advancers. Shares of Michael Kors jumped 20.31 percent after the retailer raised its full-year revenue forecast, while Ralph Lauren was up 9.79 percent following revenue and profit beat. Dean Foods lost 19.18 percent after the largest U.S. dairy processor’s quarterly results came in below estimates.

In Bond Markets U.S. Treasury yields rose in a largely range-bound session as investors held off taking significant bets ahead of the expected reduction of the Federal Reserve’s balance sheet next month and a debt auction later on Tuesday.  In late morning trading, U.S. 10-year yields rose to 2.281 percent from 2.257 percent late on Monday. U.S. 30-year bonds yielded 2.862 percent, up from 2.837 percent the previous day.