Close May 21

​In European Equity Markets the pan-European STOXX 600 closed 0.5% higher, with most sectors in positive territory. Technology stocks led the gains with a 1.6% rise. hipmakers AMS and STMicroelectronics both climbed about 4% as a result of the positive trade developments. Many semiconductor stocks had turned south on Monday amid jitters around Huawei. Norsk Hydro was among the top performers in the STOXX 600, rising almost 6% after Brazil gave the go-ahead for its Alunorte Alumina plant to reopen.



In Currency Markets sterling fell below $1.27 for the first time since mid-January, battered by dollar strength and growing fears that UK Prime Minister Theresa May will fail to persuade cabinet colleagues to back an amended version of her EU withdrawal deal. Brexit uncertainty has grown in recent weeks after the breakdown of talks between May and the opposition Labour party. That has set the stage for the thrice-rejected fail to fail again if, as planned, it is put to vote in parliament next month. The pound fell 0.2% to $1.2688 while against the euro it was down 0.14% to a new four-month low of 87.88 pence.



In Commodities Markets oil futures held steady on Tuesday, supported by U.S.-Iran tensions and expectations of ongoing OPEC supply cuts but under pressure from concerns about a drawn-out trade war between Washington and Beijing. Brent crude futures, the international benchmark for oil prices, rose 1 cent to $71.98 a barrel. U.S. West Texas Intermediate (WTI) crude futures were unchanged at $63.21 a barrel, as the WTI contract for June delivery expired. The July contract was trading at $63.19 a barrel.



In US Equity Markets indices rose in a broad-based rally on Tuesday, as Washington’s decision to temporarily ease curbs on China’s Huawei Technologies allayed concerns over a further escalation in trade war between the two countries. The Philadelphia Semiconductor Index gained 1.61% and was on track to end a three-day slump. Companies that have been supplying to Huawei including Intel Corp, Qualcomm Inc, Xilinx Inc and Broadcom Inc rose between 1% and 2%. The S&P 500 was up 0.68%, at 2,859.43 and the Nasdaq Composite rose 0.87%, at 7,769.41.



In Bond Markets Government bond yields in much of the euro zone steadied above recent multi-year lows on Tuesday, with investors still reluctant to sell fixed income given heightened concern about economic growth and trade tensions. The Netherlands launched its first green bond, raising almost six billion euros ($6.7 billion) after getting more than 21 billion euros in bids. The new 20-year bond is the first from a triple-A rated sovereign. Germany’s benchmark 10-year government bond yield rose nearly 2 basis points on the day to minus 0.07%, off 2-1/2 year lows.