European Close Market Briefing – 13/06/2017 – by Arjun Lakhanpal

June 13, 2017 by

In European Equity Markets a recovery in tech stocks and fresh optimism over troubled Italians banks lifted stocks from seven-week lows on Tuesday. The pan-European STOXX 600 index ended up 0.6 percent, almost fully recovering losses from the previous session. Italy’s benchmark rose 0.9 percent. Dialog Semiconductor, Infineon and ASM International were among the tech stocks gaining the most, rising 1.2 to 4.7 percent. UBI Banca and BPER Banca led European banks, rising 3.4 percent and 2.5 percent respectively. UniCredit gained 1.6 percent.Greek stocks rose 1.6 percent after officials said a compromise on debt may be reached on Thursday, paving the way for new loans for Athens while leaving the contentious debt relief issue for later.

In Currency Markets the U.S. dollar fell to a two-month low against the Canadian dollar on Tuesday, just a hair above its lowest level against the loonie since late February, after hawkish comments from Bank of Canada Governor Stephen Poloz. The comments sent the Canadian dollar to its highest level in almost two months, with the currency gaining almost 1.5 percent late on Monday and early on Tuesday to trade at C$1.3269 against its U.S. counterpart. The pound last traded up 0.7 percent at $1.2753 and 87.82 pence per euro. Against the yen, the dollar held steady at 109.97. The euro eased 0.1 percent to $1.1193. The dollar index eased 0.13 percent to 97.02, holding below Friday’s two-week highs of 97.47.

In Commodities Markets oil prices edged down on Tuesday after OPEC reported an increase in its production for May despite a supply cut agreement and said the oil market was rebalancing more slowly than expected. Benchmark Brent crude was 17 cents lower at $48.12 per barrel, reversing gains made earlier in the session when it edged up to $48.67. U.S. light crude was at $45.86 per barrel, down 22 cents. Prices initially nudged higher after the world’s top exporter Saudi Arabia outlined cuts to customers in July that included a reduction of 300,000 barrels per day to Asia. Spot gold fell 0.3 percent to $1,261.88 per ounce after hitting a session low of $1,259.16, its weakest since June 2. Silver lost 1.2 percent to $16.72 per ounce

In US Equity Markets  stocks were higher on Tuesday, with the Dow hitting an all-time high as bank stocks gained and technology shares rebounded from a selloff. The Dow Jones was up 0.18 percent, at 21,272.98, the S&P 500 was up 0.11 percent, at 2,432.09 and the Nasdaq Composite was up 0.17 percent, at 6,185.69. Seven of the 11 major S&P sectors were higher. rose 0.7 percent, after recording losses for the past two days. Financials rose 0.4 percent, helped by gains in big banks after the U.S. Treasury Department announced a plan to make sweeping changes to banking regulations on Monday.  Tesla was up 2.5 percent after Berenberg raised its rating on the stock to “buy” from “hold”.

In Bond Markets short-dated U.S. Treasury yields briefly hit multi-week highs on Tuesday after data showing rising U.S. services prices and as traders awaited more supply, while caution ahead of Wednesday’s Federal Reserve statement prevented the move from gaining traction. Benchmark 10-year Treasuries were last up 1/32 in price to yield 2.207 percent, compared to 2.213 percent late Monday. U.S. three-year Treasury yields hit 1.511 percent, their highest since May 16, while two-year yields touched their highest in a month of 1.367 percent after the data.