European stocks mostly higher
European stocks traded mostly higher on Tuesday, with oil stocks driving the biggest gains. The pan-European Stoxx 600 was 0.3 percent higher with the various sectors trading mostly in positive territory. Oil stocks rose 1.5 percent, becoming the topperforming sector in late morning deals. This followed a fresh four-year high in Brent prices.
Investors continue to digest merger news after Comcast made the highest bid for the U.K. broadcaster Sky. The latter’s stock was trading marginally higher. Earlier on Tuesday, Comcast announced that it had bought 29.1 percent of Sky shares in the market.
The Federal Open Market Committee will kick off its two-day monetary policy meeting today, with analysts expecting the central bank to announce a quarter point rate hike when it concludes its meeting on Wednesday.
Brexit continues to dominate the headlines. Chancellor Angela Merkel said Tuesday that an agreement over Brexit is possible in October, but it is not yet clear what the U.K. government wants.
Japan’s Nikkei rose for a seventh session on Tuesday helped by gains in chip-related stocks that offset weakness in construction equipment manufacturers, which fell on worries that a new round of U.S.-China trade tariffs could hurt global demand.
Investors returned to the market after a national holiday on Monday. The dollar’s ascent above 112 yen level has underpinned overall sentiment. Tuesday’s gainers included large-cap stocks such as Tokyo Electron and Advantest Corp, which soared 2.4 percent and 3.5 percent, respectively, tracking steady U.S. tech shares overnight.
The Nikkei share average gained 0.3 percent to 23,940.26, rising for the seventh straight session. The benchmark index hit its highest in more than eight months after rising U.S. yields pushed up financial stocks while the weak yen supported overall sentiment. The broader Topix gained 1.0 percent to 1,822.44, the highest level since early February. 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.