Asian markets traded mostly lower on Tuesday, as investor sentiment remained weak. The Nikkei sank.8% to 8664, the Kospi dropped .4% to 1818, and the ASX 200 fell 15 points to 4013. Markets in greater China outperformed, as the Hang Seng climbed .5% to 18982, while the Shanghai Composite eased 1% to 2221.
In Europe, the major indexes closed mixed, while Italian and Spanish debt yields continued to rise. The DAX inched up .1% to 6137, while the CAC40 fell .3% to 3013, and the FTSE eased .1% to 5447. Citigroup downgraded BMW, sending the stock down 2.3%, and weighing on auto makers.
US stocks managed a moderate gain following Monday’s slide. The Dow gained 32 points to 12535, the Nasdaq advanced .6% to 2854, and the S&P 500 climbed .5% to 1320.
New Corp surged 8.3% following a report in the Wall Street Journal which said the company may spin off its publishing division.
Zygna shares tanked 5% after announcing the “Zygna with Friends” network, which will allow users to connect outside of Facebook.
Apollo Group jumped 10.3% after reporting earnings which blew past analyst forecasts.
Treasuries and Commodities
Bond prices declined, with 10-year notes down 9/32 to yield 1.63%, and 30-year notes down 18/32 to yield 2.71%.
Natural gas rallied 3.1% to 2.778, continuing its recent breakneck uptrend, while crude oil ticked up .2% to 79.34.
Precious metals traded lower, as silver fell 1.8% to 27.035, and gold dropped .9% to 1574. Copper edged up .1% to 3.3195.
The Dollar traded mostly lower on Tuesday, with commodity currencies the primary beneficiaries. The Australian Dollar climbed .6% to 1.0067, and the Canadian Dollar gained .5% to 1.0238. The British Pound rose .4% to 1.5642, and the Yen ticked up .2% to 79.49. The Euro and Swiss Franc both slipped fractionally.
Tuesday’s economic reports were mostly negative. The Conference Board’s consumer confidence index dropped to 62 from 64.4, more than expected. The Richmond manufacturing index unexpectedly tumbled to -3 from last month’s +4 reading. On the upside, home prices fell less than expected, slipping 1.9% year over year, besting forecasts for a 2.4% drop.
Wednesday’s economic calendar will include durable goods, pending home sales, weekly oil inventories, and weekly mortgage applications.
A two-day European summit will begin on Thursday to address the regional debt troubles, although investors are growing increasingly skeptical that politicians will reach any meaningful agreement.
Earnings are due from General Mills, Lennar, Monsanto, Paychex, and Whirlpool.