European stocks stable as markets worldwide gain

On Tuesday both European stocks and the dollar lost some momentum as investors digested recent strong gains spurred by the prospect of tax cuts in the world’s biggest economy and growing optimism for global growth. The euro drifted as tensions bubbled in Catalonia.

The Stoxx Europe 600 Index traded sideways despite American equities posting fresh records and Asian markets rallying. Japanese shares closed at their highest in more than two years and Chinese stocks in Hong Kong surged. Developing nation equities also jumped. The greenback pared an increase but remained higher against almost all its major counterparts. West Texas crude fell closer to $50 per barrel.

Goldman sees the dollar rising particularly against the euro, which could be hurt by political concerns amid the Spanish woes over Catalonia and by elections in Austria and Italy in coming months.

The Stoxx Europe 600 Index dipped less than 0.05 percent as of 10:53 a.m. London time. The MSCI All-Country World Index climbed 0.1 percent, reaching the highest on record. The U.K.’s FTSE 100 Index gained 0.1 percent, hitting the highest in almost eight weeks with its fifth consecutive advance. The MSCI Emerging Market Index jumped 0.8 percent to the highest in more than a week. Futures on the S&P 500 Index rose 0.1 percent, hitting the highest on record with its fifth straight advance.

Japan’s Nikkei 225 Stocks Average jumped 1.1 percent to the highest close since August 2015, while the Topix index added 0.7 percent. The Hang Seng Index rose 2.3 percent. The Japanese yen fell 0.2 percent to 113.02 per dollar, the weakest in almost 12 weeks.

Gold dipped less than 0.05 percent to $1,270.86 an ounce, the weakest in eight weeks. West Texas Intermediate crude declined 0.3 percent to $50.45 a barrel, the lowest in two weeks.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.