Market Report

U.K. markets declined Tuesday as regional investors concentrated on European inflation data and corporate earnings reports.

Annual inflation in the euro zone increased to 2.4% in December, according to a flash estimate from Eurostat released on Tuesday, up from 2.2% in November. This result met expectations based on a Reuters poll of economists and was influenced by high services costs and rising energy prices.

US stocks began Tuesday's session primarily in negative territory as bond yields increased, following data indicating that the services sector expanded more than anticipated last month, and job openings reached a six-month high.

In the United Kingdom, borrowing costs increased on Tuesday subsequent to an auction of 30-year Treasury gilts, wherein yields on long-term bonds reached their highest levels in nearly three decades. This development followed the U.K. Debt Management Office's auction of £2.25 billion worth of 30-year maturity gilts, which were initially offered with a yield of 4.375%.

Additionally, yields on gilts with shorter maturity terms also experienced an upward movement on Tuesday.

Gold prices increased on Tuesday, supported by a decline in the U.S. dollar and China's central bank expanding its gold reserves for the second consecutive month. The market is anticipating U.S. economic data to better understand the Federal Reserve’s policy direction.

Oil prices also rose on Tuesday, reversing earlier declines. Concerns about reduced supply from Russia and Iran due to escalating Western sanctions contributed to this upward movement.

In company news, it was announced on Tuesday that Getty Images Holdings and Shutterstock will merge in a $3.7 billion deal. This announcement led to an increase in shares for both companies.

In a joint statement, the firms stated that the merger would create a content library with "greater depth and breadth for the benefit of customers [and] expanded opportunities for its contributor community."