The FTSE 100, Stoxx 600, and Germany’s DAX all closed in the green
In commodities, oil and gold edged higher as the dollar cooled after a great run earlier
Investors are eyeing Fed Chair Jerome Powell’s comments as well as US inflation data
European stocks closed higher on Tuesday as markets continued to recover from last week’s sell-off.
The FTSE 100 closed 0.6% up, while the pan-European Stoxx 600 index ended Tuesday’s session 0.8% higher. The French CAC closed 1.0% higher.
Germany’s DAX also saw gains of around 1.1% as tech stocks moved higher across the board to cut into losses suffered last week.
While investors are keen on the US Consumer Price Index and Producer Price Index data set to be released this week, it is expected the Fed chair could say something that ends up shifting sentiment across the markets.
Oil prices hit two-month highs
Oil prices also rose on Tuesday, recouping losses suffered on Monday to hit above $83 per barrel. The uptick in oil prices follows last week’s OPEC+ meeting, with markets buoyed by the tight supply and rising demand.
Brent crude rose 3.5%, to $83.52 a barrel, the highest price level for oil since November last year. The US West Texas Intermediate (WTI) on its part gained nearly 4.1% to $81.38.
Both contracts had edged lower by about 1% on Monday.
Gold gains to $1,821 per ounce
Gold prices were also up on Tuesday, gaining upside traction in the US afternoon session as the dollar index ticked down after surging earlier to 95.99.
The price of gold continued to hold above $1,800 per ounce, with Tuesday seeing intraday highs of $1,821 per ounce. The precious metal has also been helped by a decline in US Treasury yields, which has retreated from a day high of 1.785% to around 1.75%.
In currencies, the dollar index edged higher before cooling off as investors across the FX markets also waited for comments from Fed chair Powell.
The dollar index rose nearly 0.07% on the day to 95.99 before retreating so slightly against some of its peers.
The dollar gained against the Japanese yen but saw the euro and the Sterling move higher.
The Sterling climbed 0.38% against the USD to hit its highest level in nearly 10 weeks, helped by expectations of another interest rate hike by the Bank of England. The euro was also up 0.35% to change hands around 1.136 against the dollar.
The Australian dollar also rose against the US dollar, edging 0.57% to 0.721 as data showed November sales beat estimates.
In cryptocurrencies, Bitcoin’s price was up 2.4% at the time of writing and traded near $42,750. The upside has cut weekly losses to 8% and sees the flagship crypto asset bounce from Monday’s dip below $40,000.