Close May 28th

In European Equity Markets the pan-European Stoxx 600 index ended 0.22% lower. Italy’s FTSE MIB index was among the worst performers, falling around 0.7% amid renewed tensions between Rome and Brussels over the country’s public finances. Autos stocks led the gains, trading provisionally 0.64% higher after Fiat confirmed it proposed a merger with Renault. NMC Health jumped to the top of the European benchmark. It comes after the company upgraded its 2019 guidance and raised its revenue outlook. Shares of the London-listed stock rose over 7.1%.



In Currency Markets sterling languished just off four-month lows on Tuesday, with the outcome of last week’s European election seen possibly emboldening proponents of a no-deal Brexit as the battle to succeed Prime Minister Theresa May got underway. The British currency fell 0.13% to $1.2657, having traded as low as $1.2605 last week. It was down 0.2% versus the euro at 88.405 pence to stand just off four-month lows. However, sterling’s downside was limited by the fact that parties opposing Brexit also made sharp gains in the vote.



In Commodities Markets oil prices were mixed on Tuesday as prices were caught between concerns over global supply and fears that the U.S.-Chinese trade conflict will hurt demand. Brent crude fell by 9 cents, or 0.1%, to $70.02 a barrel, with prices repeatedly veering above and below $70 in choppy trading. U.S. WTI was up 47 cents, or 0.8%, at $59.10. U.S. crude futures were trading for the first time since Friday after a long holiday weekend. Investors, however, are concerned that the trade war between the United States and China could hit the global economy and dent fuel consumption.



In US Equity Markets stocks eked out gains on Tuesday, helped by technology stocks, but the likelihood of a protracted trade war between the United States and China kept investors on the sidelines. The S&P 500 was up 0.16%, at 2,830.72 and the Nasdaq Composite rose 0.37%, at 7,664.94. The rate-sensitive banking sector fell 0.35%, while the broader financial sector fell 0.15% and weighed on the S&P. Advanced Micro Devices jumped 8% and also helped lift the sector, after the chipmaker launched new computing and graphics products on Sunday. Rival Intel Corp fell 2.3%.



In Bond Markets Italy’s bond yields rose sharply for a second day on Tuesday as its deputy prime minister hit back over what he said were European Union plans to slap a fine on the country for spending too much. Italian government bond yields rose across the board. Ten-year yields rose to their highest in almost two weeks at 2.73%, adding to an 11 bps rise on Monday and marking the sharpest two-day jump since early February. German 10-year Bund yields fell to its lowest in nearly three years at -0.163%.