Global stocks up as traders follow US presidential debate

BEIJING—Global stock markets were higher Tuesday as traders followed the US presidential debate between candidates Hillary Clinton and Donald Trump.

Investors watched the Clinton-Trump debate in a tight race that has unnerved markets seeking certainty about the future of US policy. Trump has called for controls on trade and immigration, while Clinton is seen as more engaged with Asia. Uncertainty about the election outcome has made global markets risk-averse.

“Markets are searching for the least worse option between the two US candidates. One is a known market bad, the other an unknown bad,” said Michael McCarthy of CMC Markets in a report. “Any ramping up of populist rhetoric would likely rattle inves- tors. Any perception that the outsider candidate won the debate could bring a market rout.”

European banks tumbled after the German magazine Focus said Deutsche Bank won’t get a government bailout if it asks for one. US-traded shares of Deutsche Bank fell 7.1 percent. Focus said the German government also won’t help the Deutsche Bank by intervening with US officials who want it to pay $14 billion to end an investigation into its sale of mortgage-backed securities.

Stocks fell for a second straight day. Banks were hurt by a drop in bond yields, which means lower interest rates and smaller profits on loans. Consumer companies fell as home improvement retailers were affected by a slowdown in sales of new homes. Stocks are com- ing off two weeks of solid gains. The Nasdaq set all-time highs twice last week.

Benchmark US crude shed 27 cents to $45.66 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $1.45 on Monday to close at $45.93. Brent crude, used to price international oils, declined 42 cents to $47.51 in London. It gained $1.45 the previous session to $47.93.

The dollar strengthened to 100.52 yen from Monday’s 100.37 yen. The euro was unchanged at $1.1248.