European shares remained virtually flat on Tuesday as economic data from China points toward slowing inflation in the world’s second largest economy. The STOXX 600 added 0.1% to close the day at 376.27 after falling more than 1% on Monday. Vodafone Group PLC (L:VOD) led the gainers with a 3.9% climb after the network increased its revenue forecasts for the year. Vodafone’s marked gains lifted the UK’s FTSE 100 though the index ended eventually with a 0.32% decline to trade at 6,275.28. Greece has returned to the spotlight with a 1.65% decline in the Athens General-Composite as creditors withhold a €2 billion payment until they discuss whether Greece has met the conditions required for the funds. The political situation in Portugal has seen the PSI 20 index decline 0.33% following Monday’s sharp 4% fall as anti-austerity parties are likely to form the country’s next government.
U.S. stocks posted modest gains on Tuesday as investors eye the Federal Reserve’s interest rate hike for December. The Dow Jones Industrial Average rose 27.73 point, or 0.16%, to trade at 17,758.21. The S&P 500 index added 3.14 points, or 0.15%, to trade at 2,081.72 and the Nasdaq Composite fell 12.06 points, or 0.24%, to close the trading day at 5,083.24. The consumer discretionary sector rose higher only to offset a sharp decline in Apple’s shares. The tech-giant has seen its shares fall 3.15% following statements made by Credit Suisse (VX:CSGN), claiming that Apple (O:AAPL) had reduced its components orders by as much as 10% due to weak demand for company’s newer products.
In currencies, the euro faced some trouble as the Portugal’s political uncertainty made room for further turbulence in a market already expecting further monetary easing for the European Central Bank. The euro hit a six-month low on Tuesday at $1.0673 and has since rebounded slightly higher. The dollar index, comparing the greenback to six of its major peers, has moved away from a seven-month high as it fell 0.4$ to 98.883. The dollar moved 0.3% lower against the yen to trade at 122.86 yen. The dollar’s strength continues to weigh down on commodities as oil prices resume their decline. A spike in U.S. inventories prompted crude oil to fall 46 cents to $43.75 a barrel and Brent oil fell 22 cents to $47.22 a barrel.
This week’s economic data releases continue today Chinese production and UK employment data. The week will conclude with Friday’s GDP data from the Eurozone as well as U.S. retail sales data.