European stocks advanced on Tuesday with rising oil. The euro weakened against the dollar to $1.0865 late Tuesday compared with $1.0887 late Monday. The Stoxx Europe 600 index ended 1.44% higher, posting gains for four consecutive sessions. Germany’s DAX 30 rallied 2.34% to 9717.16. France’s CAC 40 gained 1.22%, UK’s FTSE 100 added 0.92%. Oil and basic materials stocks led the gainers. The rally was supported also by positive economic data: euro-zone unemployment rate in January slipped to 10.3% from 10.4% in December. Unemployment declined for a third consecutive month while no change was expected in January. Also the final reading of euro-zone manufacturing PMI in February rose to 51.2 after a reading of 51 in previous month. Today at 10:30 CET February Construction PMI will be released in UK. The tentative outlook is positive. And at 11:00 CET January Producer Price Index will be published in euro-zone. The tentative outlook is negative.
Asian stock markets are rising today underpinned by overnight gains in oil, China’s move to provide additional monetary stimulus by cutting the required reserve ratio 50 basis points and subsiding fears of global economic slowdown after positive economic data from US. In a move to attract more foreign direct investment authorities announced on Tuesday China will lower the threshold for foreign investment this year. Chinese stocks are rising today with Shanghai Composite Index up 4.2%. Nikkei rallied 4.1% today hitting three week high as yen weakened against the dollar on positive US manufacturing and construction data. Exporters led the gainers with Panasonic soaring 6.8%, Sony jumping 5.2% and Toyota gaining 3.4%. Tomorrow at 03:00 CET February Services and Composite PMIs will be released in Japan.
Oil prices are edging lower today on expectations of continued build in US crude stockpiles. Late Tuesday report of American Petroleum Institute, an industry group, indicated US crude stocks likely grew by 9.9 million barrels against expected 3.4 million barrels. Oil prices closed higher on Tuesday boosted by Russia’s Energy Minister Novak’s statement that 15 nations, accounting for 73% of global oil output, support a decision to stabilize oil production. April WTI crude closed 1.9% higher settling at $34.40 a barrel on the New York Mercantile Exchange. Today at 16:30 CET US crude oil inventories will be released by the Energy Information Administration.
Copper climbed 1.3% today in London. Spot gold declined 0.4% to $1,227.40 as haven demand fell with rising investor appetite for risk.
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