European stock markets rebounded on Tuesday as Chinese markets stabilized. The euro edged lower against the dollar, trading at $1.0856 late Tuesday in New York compared with $1.0861 late Monday. The Stoxx Europe 600 index ended 0.9% higher, Germany’s DAX 30 rallied 1.5% to 9985.43 after closing on Monday at its lowest level since early October, and France’s CAC 40 added 1.6%. Retailers advanced, with shares of Wm. Morrison Supermarkets and Debenhams rallying 8.7% and 15% respectively after the UK retailers posted better-than-expected sales over the Christmas period. Mining companies fell with Glencore ending lower 2%, Antofagasta dropped 3.5%, and Rio Tinto closed down 2.7%. Today at 11:00 CET December Industrial Production will be released in euro-zone. The tentative outlook is positive.
Nikkei closed sharply higher today posting a 2.9% gain after investor sentiment was buoyed by better-than-expected Chinese trade data. China’s exports rose 2.3% in yuan terms in December from a year earlier while imports fell 4.0%. In US dollar terms, the 1.4% fall in exports was less-than-expected as imports fell by 7.6%. The yen weakened supporting exporters such as Toyota and Pioneer which rose 2.93% and 3.9% respectively.
Oil futures prices are still moving lower today after falling to 12-year lows on Tuesday. February WTI closed down 3.1% at $30.44, lowest finish since December 2003 . February Brent crude fell 2.2% to $30.86 a barrel on London’s ICE Futures exchange, the lowest settlement since April 2004. Investors are concerned the global glut will not clear soon. The Energy Information Administration agency report on Tuesday said that a limited decline in US supplies next year and steady growth in global demand will help ease the glut only in the third quarter of 2017. The American Petroleum Institute said US crude-oil inventories fell by 3.9 million barrels last week, while gasoline and distillate stocks rose by 7 million and 3.7 million barrels respectively. Today at 16:30 CET US Crude Oil Inventories will be released by Energy Information Administration.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
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