Most US equity indices closed higher on Tuesday, even as earnings reports from major companies came in mixed. The Dow 30 index rose 49.44 points to 18,053.60 (+0.27%), the S&P 500 index closed 6.46 points up to 2,100.80 (+0.31%), but the Nasdaq dipped 19.69 points to 4,940.33 (-0.40%). The S&P 500 VIX, which is considered a gauge of market uncertainty, fell 0.11 points to 13.24 (-0.82%).
Yahoo’s Q1 2016 earnings figures came in slightly better than analysts’ expectations, making 8 cents per share versus forecasts at 7 cents. However, the company reported a decline of 11.3% in revenue and a net loss of $99 million. VMware Inc., on the other hand, printed impressive figures with strong sales of its new virtualization software. Q1 revenue is up 5.2% to $1.59 billion, higher than estimates at $1.58 billion. Meanwhile, Intel announced that it would shed 12,000 positions even though earnings beat expectations at 54 cents per share versus 48 cents per share.
European markets benefit from risk appetite
Stock indices in the euro zone and the United Kingdom posted gains, lifted by stronger than expected ZEW economic sentiment data. Germany’s index jumped from 4.3 to 11.2 while the region’s reading climbed from 10.6 to 21.5.
The German DAX surged 229.28 points to 10,349.59 (+2.27%), the French CAC 40 was up 59.64 points to 4,566.48 (+1.32%), and the Euro Stoxx 50 was up 46.92 points to 3,110.95 (+1.53%). Meanwhile, the London FTSE advanced 51.83 points to 6,405.35 (+0.82%) after Bank of England Governor Mark Carney expressed his sentiments against a Brexit, citing that it would be more costly for the government to fund the current account deficit if the UK leaves the EU.
Asian equities mixed, oil retreats
Crude oil retreated off its highs when Kuwait’s oil strike ended, leading to a return in production. WTI crude oil is down to $41.82/barrel and Brent crude oil retreated to $43.45/barrel. In New Zealand, the latest GDT auction yielded a gain of 3.8% in dairy prices, stronger than the previous 2.1% increase.
The Nikkei is up 102.86 points to 16,977.30 (+0.61%), the S&P ASX 200 is up 20.09 points to 5,208.90 (+0.39%), and the China A50 index is down 4.67 points to 9,653.75 (-0.04%). Event risks for the day include the release of the UK jobs figures and US crude oil inventories, as well as speeches from European Central Bank head Mario Draghi and Bank of Canada Governor Stephen Poloz.
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