European stocks advanced on Tuesday as strong earnings from oil giant BP gave some direction to otherwise listless markets. US equity futures drifted higher and the euro and pound edged lower.
The Stoxx Europe 600 Index headed for the sixth gain in a row, even as chip suppliers Infineon Technologies and AMS issued warnings about future growth. BP was a major part of that advance, spurring energy shares as it joined Big Oil peers with an earnings beat.
Futures for the S&P 500 Index fluctuated in a narrow range in the wake of Monday’s rally. Sterling fell slightly following a weak services report, while Europe’s common currency also struggled as disappointing data from Italy hung over the euro area.’
In Asia, many markets were shuttered for the Lunar New Year holidays. Australian shares jumped the most in more than two years as financial stocks rallied after the results of a yearlong inquiry into misconduct in the industry. Japanese equities nudged higher.
The relative calm in markets belies an undercurrent of uncertainty as trade talks between the US and China remain unresolved and America lurches toward another government shut-down. Investors will be watching President Donald Trumps second State of the Union address later for any more signs of political rancour.
In Australia, an index of financial stocks advanced to the highest since November after a Royal Commission report stopped short of demanding a structural overhaul of the scandal-plagued industry, or tighter lending rules that would threaten profits. The Aussie dollar reversed a slide after the central bank left interest rates unchanged.
Elsewhere, West Texas oil climbed as traders weighed output cuts from the OPEC producer group and its partners against expectations for rising US crude inventories.
Among key events in the coming days: Asian markets are closed on Tuesday: China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Pakistan
Earnings season continues, with reports this week from Twitter, Hasbro, Ryanair, Disney, Philip Morris, BNP Paribas, ING, MetLife, Societe Generale
Trump delivers a delayed State of the Union address on Tuesday. On Wednesday, Federal Reserve Chairman Jerome Powell gives his first public comments following the January FOMC meeting and rate decision. Central banks in India and the UK set rates this week.
These are the main moves in markets:
Stocks Futures on the S&P 500 Index gained 0.1 per cent as of 10:07 a.m. London time. The Stoxx Europe 600 Index rose 0.8 per cent. TheU.K.s FTSE100 Index jumped 1.1 per cent. The MSCI Asia Pacific Index rose 0.3 per cent to the highest in almost four months. The MSCI Emerging Market Index gained 0.1 per cent.
Currencies
The Bloomberg Dollar Spot Index rose less than 0.05 per cent. The euro decreased 0.2 per cent to $1.1418. The British pound dipped 0.1 per cent to $1.3016. The Japanese yen fell 0.1 per cent to 109.99 per dollar.
Bonds
The yield on 10-year Treasuries gained less than one basis point to 2.73 per cent. Germanys 10-year yield rose two basis points to 0.19 per cent. Britain’’s 10-year yield was little changed at 1.273 per cent.
Commodities
Gold declined less than 0.05 per cent to $1,311.60 an ounce. West Texas Intermediatecrude gained 1 per cent to $55.12 a barrel.