Daily market review

United States

US equities improved Tuesday with company news in focus and financials getting a lift from another uptick in bond yields. The Dow Jones industrial average rose 1.1 percent, the S&P 500 gained 0.8 percent, and the NASDAQ gained 1.3 percent.

Banks including Citigroup, up 1.2 percent, and Wells Fargo, up 2.5 percent, got a lift as the US 10-year note yield approached 2 percent, up from 1.8 percent a week ago. Materials companies advanced with industrial metals up. Chemicals gained on upbeat results from Dupont, which rose 6.3 percent. Reopening stocks extended recent gains with cruise lines and airlines leading.

On the downside, communications services remained out of favor as Meta lost 2.1 percent, though Google recovered late to end up 0.1 percent. Pfizer, down 2.8 percent on an earnings miss, depressed pharma. Energy lagged as oil prices fell back from recent highs as indirect US-Iran talks resumed in Vienna, and as diplomatic efforts continued in the Ukraine crisis.

Among other companies in the news, Amgen rose 7.8 percent to boost the Dow after announcing a big share buyback. American Express gained 3.3 percent after announcing it will offer digital checking.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil declined by US$1.72 to US$91.04 while spot gold rose US$5.56 to US$1,826.99. The US dollar was mostly higher vs. major currencies. Yields on the US Treasury 30-year bond rose 4 basis points to 2.26 percent, and the 10-year note rose 4 basis points to 1.96 percent.


Equities were mixed with losses in energy and tech stocks offsetting strength in basic resources and financials. The Europe-wide STOXX 600 was flat, the German DAX firmed 0.2 percent, the French CAC gained 0.3 percent, and the UK FTSE 100 eased by 0.1 percent.

A retreat in oil prices undercut energy stocks though BP edged up 0.3 percent on an earnings beat. Technology had a bad day with chipmakers leading the way down and the sector remaining out of favor after tech losses on Wall Street. Ocado, the online grocer and robotics firm, slipped 8.4 percent on weaker guidance.

On the positive side, banks were better bid in response to a more hawkish tone from the European Central Bank and higher bond yields. Basic resources perked up on rising industrial metals prices. Antofagasta gained 2.6 percent and Glencore rose by 1.9 percent.

Among companies in focus, Aker Solutions, the engineering firm, gained 7.9 percent after raising its guidance. On the downside, Yara International, the chemicals company, fell 7 percent on an earnings miss.

Asia Pacific

Asia/Pacific markets were mixed with growth stocks lagging. Hong Kong tech and biotech stocks were hit hardest while Australia's miners and financials fared best.

Among mainland Chinese markets, China's CSI 300 index declined 0.6 percent and the value-stock heavy Shanghai composite gained 0.7 percent. Energy and utilities outperformed while industrials and consumer staples slipped. Reports of poor consumer spending during the weeklong Lunar New Year holiday weighed on sentiment.

Hong Kong's Hang Seng index dropped 1.0 percent with tech, biotechs, and health care off the most after the US Commerce Department added WuXi Biologics, down 23 percent, and 32 other companies to a list restricting their ability to do business with US firms.

The Taiwan Taiex firmed 0.4 percent and the South Korean KOSPI rose 0.1 percent with early gains trimmed after headlines on US restrictions on Chinese firms.

Positive earnings news helped Japanese equities though rising JGB yields limited the gains. The Nikkei 225 ended up 0.1 percent while the Topix rose 0.4 percent. Best sectors were transportation, agriculture, and banks.

Indian equities were mixed with the Sensex ending up 0.3 percent. Metals and financials outperformed while real estate, tech, and oil & gas lagged.

Rising commodities lifted miners to boost Australian equities with the All Ordinaries index up 1.0 percent and the ASX 200 up 1.1 percent. Banks and iron ore producers rallied, along with real estate, utilities, and health care. Among companies, financial services companies Suncorp rose 5.5 percent and Macquarie gained 3.9 percent after earnings beats.

Looking ahead*

In Asia/Pacific, no major data reports are scheduled. In Europe, German merchandise trade and Italian industrial production are on tap. In North America, the US wholesale inventories report is on tap.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

Commodities and currencies