|
 In Europe, bond yields fell as attention returned to central bank
buying after weeks of Greek-related distractions, while stocks
dipped on weak earnings results from drugmakers.
"Greece may be easing us into the quieter summer months, however
there is still plenty to focus on in the markets, with commodities
grabbing plenty of attention," said Craig Erlam, a senior market
analyst at Oanda.
"Meanwhile, earnings season is also well underway and could prove
key in determining whether we will see rate hikes this year and
companies attempt to weather the strong dollar storm."
Euro zone bond prices rose broadly on Tuesday, with yields on
10-year Italian debt down for their eleventh day -- their best run
since the summer of 2008.
Strategists said demand for bonds was being supported by cash from
debt redemptions and purchases from the European Central Bank under
its quantitative easing program, both of which were having more of
an impact in holiday-thinned trading.
The FTSEurofirst 300 index of top European shares was down 0.3
percent at 1,609.57 points after rising to a six-week high in the
previous session.
The healthcare sector lead the market lower after Novartis reported
quarterly income below analysts' expectations.
"There's not a lot of conviction in the move higher. Maybe it's
because we've had such a rapid rally since the start of July that
the bulls need a breather, or that equities valuations are starting
to look a little toppy," Jonathan Sudaria, a dealer at Capital
Spreads, said in a note.
MSCI's broadest index of Asia-Pacific shares outside Japan was last
up about 0.5 percent, after wavering between positive and negative
territory for much of early trading.
China stocks extended gains as government rescue measures appear to
have restored some stability to trading.
Japan's Nikkei share index ended up 0.9 percent as markets reopened
after a public holiday on Monday, reaching a nearly four-week highs
on growing expectations for strong first-quarter earnings.
Spot gold added about 1 percent on the day to $1,107.49 an ounce,
recovering after a sharp slump.
Demand for safe havens such as gold have waned as Greece this week
paid off its creditors, reopened its banks and submitted legislation
needed to start talks on a multi-billion euro rescue package.
[to top of second column] |
Investors have found less incentive to hold gold, as the dollar
strengthens ahead of an expected increase in U.S. interest rates
later this year, the first in nearly a decade.
St. Louis Fed President James Bullard said on Monday there was a
better than 50 percent chance that the U.S. central bank will raise
interest rates in September.
The dollar jumped to its highest since April 23 against a basket of
major currencies in early European trading.
The euro edged up slightly on the day to $1.0857 , after dipping to
its lowest since mid-April overnight.
The dollar was up slightly against the yen, to buy 124.35 after
earlier touching a six-week peak of 124.48 yen.
In other commodities trading, crude oil futures continued to slip,
pressured by the strengthening dollar and concerns about a supply
glut.
U.S. August crude, set to expire later on Tuesday, was down about
0.4 percent at $49.94 a barrel, back under the $50 threshold after
it tumbled below it for the first time since April on Monday.
Brent crude slipped 0.2 percent to $56.52.
(Additional reporting Emelia Sithole-Matarise, Patrick Graham and
Atul Prakash in London, Ayai Tomisawa in Tokyo; Editing by Catherine
Evans)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
