Monday Blues Brushed Aside

Global markets enjoyed a day in positive territory on Tuesday after losing ground during Monday’s gloomy session. Monday’s losses were brushed aside as European and US volatility indexes – which reflect the level of worry among investors – dropped after market-friendly Emmanuel Macros won the French presidential run off over the weekend.

European markets moved higher, led by basic materials, oil and gas, and financial groups, as all but the utilities sector gained ground. Britain’s blue-chip stock index, the FTSE 100, soared over 45 points to reach its highest level since UK Prime Minister Theresa May announced a June 8 general election.

It was a similar picture over in the US, with markets trading at fresh records. The dollar gained for a second day, as bets increased for a hike in US borrowing costs next month. Investor sentiment has been bolstered by historically low US stock market volatility, last weekend’s French presidential election and solid corporate earnings.

Commerzbank impresses

On the earnings front, Commerzbank reported a 28% increase in net earnings for the first three months of the year on Tuesday, benefitting from a positive one-off boost at its asset run-off unit. Germany’s second largest lender beat analyst expectations and said it would aim to keep its base costs stable throughout the year. Shares were up 2.63%.

Speaking on the back of the results, Commerzbank’s Chief Financial Officer Stephan Engels told CNBC that the first quarter of the year reflected what he calls a good start to the year.

Throughout Europe, banks have been struggling as of late to deal with ultra-low interest rates as they battle to clean up their balance sheets. As was expected, the ECB left its benchmark interest rate on hold at 0% at last month’s monetary policy meeting.

Earnings season underway

Valeant Pharmaceuticals International posted first quarter results that beat expectations on Tuesday, although revenue came up shy. The drug maker said it is making progress selling assets and is bringing in more cash, helping chip away at its debt and allowing it to boost its full year forecast. This new was enough to send its shares soaring as much as 16%.

Shares of Marriott International were also in the green after the hotel operator’s quarterly earnings released topped Wall Street estimates. Shares were up 6.62% on the news.

But it wasn’t good news all around. Hertz Global Holding shares plunged on Tuesday after the rental-car company reported a far larger financial loss than Wall Street analysts expected, raising further concerns about the firms turnaround effects. Shares were off 14%, closing at $12.80.