On Tuesday, European markets opened mixed but finished the day slightly in the green, with U.S. markets on a flat note waiting for market reaction after President Donald Trump's address to Congress. European eyes also focused on the French data released. France’s Industrial producer prices for products sold in France rose 0.7% month on month in January. In London, the FTSE 100 advanced ending at 0.14% higher mainly due to the aerospace and defence group Meggitt rocketing over 11% after the release of its quarterly earnings, stating a rise in revenue for 2016.

Meanwhile, in the U.S, the yields on government bonds traded mostly lower, pushing bond prices slightly higher after reaching the lowest levels in five weeks, as investors remained cautious. Markets also digested economic data released before the closing bell including GDP figures and advance trade balance data.

On the U.S Corporate side. Discount Retailers, generic drug makers and oil stocks lagged to perform. Walmart was the biggest looser on Dow Jones down around 1.8%. Meanwhile, Rival retail discounter Target also gapped down, dropping to its lowest level in two and a half years. The Walmart rival has plans to slash prices to lure back customers from Walmart to bump up the lower than expected quarter four earnings. After all, that is what competition is all about…

In Japan

Japan's central bank announced it would buy government bonds worth at least ¥1.38 trillion ($12.3 billion) in March. The maximum amount is set at ¥2.18 trillion but the statement clearly notes "the frequency" may be increased. It is the first time policymakers came out with a schedule for auctions, including volumes intended for purchases, as part of the strategy to keep yields on ten-year debt close to zero. Demand at ten-year note auctions had been declining this year as yields continued to slide, even with the central bank having the scope to buy every new bond issued as part of its stimulus plan. The benchmark ten-year bond dropped as low as minus 0.075 percent after the auction.

Oil Corner

Energy prices traded in the red with markets increasingly concerned with rising levels of the US crude oil production. Energy data has been reporting a steady growth in the crude output in the US, which has greatly offset the efforts made by OPEC’s output cut deal implementation.

OPEC continues to report a successful exercise of the production cap agreement, stating a record compliance. Earlier in December, OPEC members and other major oil producers led by Russia agreed to cut global oil production by as much as 1.8 million barrels per day in efforts to battle the market oversupply that has been prevailing for over two years. Meanwhile, Saudi Arabia stated it expects crude prices to reach approximately $60 per barrel in 2017.