Equities
Asian markets posted modest gains on Tuesday, led by gains in resource stocks. The ASX 200 and Hang Seng both advanced .4%, and the Shanghai Composite edged up .1% to 2158. Japan’s Nikkei outperformed, rallying .9% to 8803, as steel makers jumped more than 4% after US-based AK Steel announced price increases. The Kospi rose fractionally to 1887.
European markets gained as well. The CAC40 climbed 1.5%, the DAX gained .7%, and the FTSE settled up .6%. The oil and gas sector surged 2.3%, thanks to a recovery in oil prices. Nokia shares jumped 5.6% amid rumors of a new smartphone launch in early September.
The upbeat cheer crossed the Atlantic, lifting US stocks for their 3rd straight day. The Nasdaq rallied .9% to 3016, the S&P 500 advanced .5% to 1401, and the Dow gained 51 points to 13168.
Fossil shares skyrocketed 31.5% after reporting earnings which blew past analyst estimates. Sirius XM Radio soared 4.6%, after reporting strong earnings and lifting its outlook.
Treasuries and Commodities
Bonds declined on Tuesday, as the equity market rally continued. 10-year notes fell 17/32 to yield 1.62%, and 30-year notes skidded 1 11/32 to yield 2.72%.
Energy-related commodities posted strong gains, due to production troubled in the North Sea. Brent crude rallied 2% to 111.75 and US crude gained 1.3%, after a report showed the region’s output would drop to a record low this summer. Gasoline climbed 2.1% to 2.9846, and natural gas advanced 1.9% to 2.964.
Copper rallied 1.2% to 3.43, silver gained .7% to 28.065, while gold slipped .2% to 1609.70.
Currencies
The Pound rose .2% to 1.5634, and the Canadian Dollar gained .3% to .9972, as both benefited from the rise in oil prices. The Euro, Swiss Franc, and Australian Dollar all inched up less than .1%, while the Yen slid .5% to 78.63
Economic Outlook
Consumer credit rose by $6.5 billion last month, far below forecasts of $11.5 billion.
Wednesday’s reports will include productivity & labor costs, weekly oil inventories, and weekly mortgage applications.
Earnings are due from Dean Foods, Macy’s, News Corp, and Ralph Lauren.
-Bradley Welcher