US stocks ended lower on Tuesday as investors digested earnings reports and weighted the impact of stronger dollar on corporate earnings. The S&P 500 closed 0.2% lower with seven of its 10 sectors finishing in the negative territory. The Dow Jones Industrial Average was down 0.5% after DuPont and IBM ended the session 2.95% and 1.14% lower respectively as they reported lower earnings and revenues. Both companies mentioned the negative impact of strong dollar on their earnings. Big gains and merger and acquisition activity in biotechnology shares lifted the technology stocks, with Nasdaq Composite outperforming as it rose 0.4% to close near record high. Mylan NV shares jumped 8.9% after Israeli drugmaker Teva Pharmaceuticals Industries Ltd offered to buy it for $82 a share in cash and stock. The dollar edged lower against main rivals as the ICE dollar index declined 0.08% to 97.8540. Today at 12:00 CET Mortgage Applications for April 17 will be released in US. At 14:00 CET February House Price Index will come out. The tentative outlook is positive for the US dollar. At 15:00 CET March Existing Home Sales will be published. The tentative outlook is positive.
European stocks finished higher on Tuesday as investors assessed corporate earnings reports and Greek debt negotiations developments. The Stoxx Europe 600 index climbed 0.6% to 409.12, with only the oil and gas group ending lower. Greece’s Athex Composite index fell 3.3% after reports the European Central Bank is looking for measures to restrict support for Greek banks, including proposals to raise the haircuts banks take on the collateral when they borrow under its emergency liquidity assistance. Germany’s DAX 30 rose 0.4% as the ZEW indicator of German economic sentiment dropped to 53.3 in April from 54.8 in March. At the same time, the indicator for current situation jumped to 70.2 in April from 55.1 in March. Euro moved higher against the dollar as concerns about Greece subsided. Today at 15:00 CET advance estimate of April Consumer Confidence Index will be released in euro-zone. The tentative outlook is positive for euro. And at 10:30 CET Bank of England minutes will be released in UK.
Nikkei ended today at 15-year high as foreign investors bought financial and other large cap shares estimated to be undervalued as they trade at 10 to 15 times earnings, whereas price-to-earning ratios for defensive shares stand at 30 or above. Tomorrow at 00:50 CET financial data on purchases of foreign and domestic bonds and stocks in the previous week will be published in Japan. At 02:35 CET preliminary Manufacturing PMI for April for Japan will be released by Markit. The tentative outlook is positive for yen.
Oil prices are falling today as Saudi Arabia ended Yemen air strikes and US Energy Information Administration is due to report Crude Oil Inventories at 15:30 CET. The US inventories are expected to increase as they have been rising for 14 weeks in a row. Oil futures moved in opposite direction on Tuesday as WTI May contract rose 0.7 % while the June Brent crude fell 0.7%.
Gold prices rebounded on Tuesday and closed above $1200 as Greek debt concerns and geopolitical tensions in Middle East boosted heaven demand for the metal. Also India celebrated its Akshay Tritiya holiday on Tuesday, which usually lifts demand for gold by about 20%.