It's a return to the drawing board for many investors who are now back online after a holiday-shortened Asian trading week. A "get back to basics" Asian session led to mixed Euro equities on Tuesday.
The U.S. dollar continues to hang tough, while stateside, Treasury yields consolidate atop of 3.1 percent while crude oil trades at a four-year high.
In Europe, Italian bonds rally as the country edges closer to delivering a budget.
Topping investors' agenda this week' FOMC meeting on Tuesday and Wednesday, along with the Federal Reserve's updated forecasts and the chair's quarterly press conference.
With all this in mind, here are five things the global markets were talking about on Tuesday.
1. Global Stocks Post Mixed Results
In Japan, the Nikkei rallied for a seventh consecutive session, helped by gains in chip-related stocks that offset weakness in construction equipment manufacturers. The ‘U.S. dollar trading through ¥112 also helped to support overall sentiment. The index gained 0.3 percent to hit its highest print in more than eight months.
Note: Both Hong Kong and South Korea indexes were closed for holidays on Tuesday.
In Australia, stocks traded flat overnight as an escalation in U.S.-China trade tensions hit risk sentiment, while energy stocks rallied on a firmer oil prices.
In China, stock fell on Tuesday in their first trading session after fresh U.S. tariffs on $200 billion worth of Chinese imports. At the close, the Shanghai Composite index was down 0.58 percent, while the blue-chip CSI300 index was down 1 percent.
2. Oil Hits New 4-Year Highs
Crude oil prices remain better bid after Brent hit a fresh 4-year high amid looming U.S. sanctions against Iran and an apparent reluctance by OPEC and Russia to raise output to offset the expected hit to supply.
Brent crude futures were up 0.4 percent from Monday's close at $81.69 a barrel, a level not seen since November 2014. U.S. West Texas Intermediate (WTI) crude futures were at $72.28 a barrel, up 0.3 percent from Mondays close.
Starting November 4, the U.S. will target Iran's oil exports with sanctions. Trump continues to put pressure on governments and companies around the world to fall in line and cut purchases from Tehran.
3. Italian Yields Fall, Bund Rallies
Italian borrowing costs rally, narrowing the gap with its German counterparts, on signs that Italy's coalition is likely to reach a compromise over next years budget. The ruling coalition is willing to keep the budget deficit below 2 percent of GDP.
In contrast, Germany's Bund yields continue to move upward, trading atop of their 4-month highs at 0.54 percent. On Monday, ECB chief Mario Draghi pointed to a "vigorous" pick-up in underlying inflation.
In the U.K, the 10-year Gilt yield nudged up to 1.624 percent, the highest in more than seven months.
4. Bitcoin's Pullback Quickens
Bitcoin slid to new intraday lows Tuesday morning, falling nearly 4 percent to $6,400 in the overnight session, moving the cryptocurrency back toward this month's lows. Bears continue to eye the $6,000 region.
The Turkish Lira rallied 6 percent over the past 24 hours to $6.1374 on reports that Turkish authorities are sending signals that an American pastor facing terrorism charges could be released next month.
EUR/USD softened slightly after observations by ECB Chief Economist Peter Praet noting that comments from Draghi on Monday were nothing new.
5. Swedish Prime Minister Ousted
Earlier this morning, Swedish Prime Minister Stefan Lofven lost a no-confidence vote in parliament and will step down after four years in power. But with neither major political bloc holding a majority, it remains unclear who will form the next government.
Note: Voters delivered a hung parliament in the September 9 election with Lofven's center-left bloc garnering 144 seats, one more than the center-right opposition Alliance. SEK was down 0.18 percent at €10.3374.
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