The National Federation of Independent Business (NFIB) released its small-business optimism index for the U.S. on Tuesday. The index rose to 95.2 in December from 94.8 in November.

6 of 10 sub-indexes rose last month, 3 sub-index fell, while one sub-index was flat.

"In December, Congress made expensing permanent and passed other favorable tax changes that had an immediate impact on bottom lines. However, prospects for any other substantive policy changes in 2016 are not good," NFIB Chief Economist Bill Dunkelberg said.

European Central Bank (ECB) Governing Council member Josef Bonnici said on Tuesday that low oil prices have positive and negative effects.

"The oil price fall has some positive impacts through raising the purchasing power of euro zone households, he said.

"There is also an impact on inflation, not in the desired direction," Bonnici added.

François Villeroy de Galhau, the European Central Bank (ECB) Governing Council member and Governor of the Banque de France, said in a speech on Tuesday that keeping interest rates low too long could lead to the next financial crisis.

"Staying too low for too long may fuel the next financial crisis as liquidity addiction and excess risk taking eventually lead to bubbles and financial instability," he said.

Villeroy de Galhau pointed out that the central bank's quantitative easing will around half a point to inflation in 2016 and almost the same to economic growth in the Eurozone.

He said in an interview with Bloomberg Television in Paris on Tuesday that inflation in the Eurozone remains too low, adding that the central bank has tools to expand its stimulus measures if needed.

Major U.S. stock-indexes pared back early gains on Tuesday as oil prices reversed course, but gains in Apple and healthcare stocks provided support. Crude prices retreated back toward $30 per barrel, which led to a 0.75% drop in the energy sector, making them the worst performing among the 10 major S&P sectors.

Most of Dow stocks in negative area (17 of 30). Top looser - E. I. du Pont de Nemours and Company (DD, -1,67%). Top gainer - UnitedHealth Group Incorporated (UNH, +2.01%).

S&P sectors mixed. Top looser - Basic Materials (-1,6%). Top gainer - Healthcare (+0,7%).

At the moment:

Dow 16320.00 +33.00 +0.20%

S&P 500 1919.75 +5.50 +0.29%

Nasdaq 100 4303.75 +30.75 +0.72%

Oil 30.31 -1.10 -3.50%

Gold 1086.00 -10.20 -0.93%

U.S. 10yr 2.13 -0.03

Stock indices closed higher despite falling oil prices. The stabilisation of the Chinese stock markets supported the European markets. The People's Bank of China (PBoC) intervened in the offshore yuan market on Tuesday. The offshore yuan strengthened after the intervention. The price gap against the dollar with the onshore yuan was eliminated.

The Office for National Statistics (ONS) released its manufacturing industrial production figures for the U.K. on Tuesday. Manufacturing production in the U.K. fell 0.4% in November, missing expectations for a 0.1% gain, after a 0.4% decrease in October.

Manufacturing output was mainly driven by a drop in basic pharmaceutical products and pharmaceutical preparations, which plunged by 4.9% in November.

On a yearly basis, manufacturing production in the U.K. decreased 1.2% in November, missing forecast of a 0.8% fall, after a 0.2% drop in October. October's figure was revised down from a 0.1% decrease.

Industrial production in the U.K. slid 0.7% in November, missing forecasts of a flat reading, after a 0.1% rise in October.

The decline was driven by a demand for energy. Electricity and gas output plunged 2.1% in November.

On a yearly basis, industrial production in the U.K. gained 0.9% in November, missing expectations for a 1.7% rise, after a 1.7% increase in October.

The National Institute of Economic and Social Research (NIESR) released its estimate of gross domestic product (GDP) for the U.K. on Tuesday. The GDP estimate rose by 0.6% in three months to December, after a 0.6% growth in three months to November.

According to the NIESR, the U.K. economy grew 2.2% in 2015, after a 2.9% rise in 2014.

Indexes on the close:

Name Price Change Change %

FTSE 100 5,929.24 +57.41 +0.98 %

DAX 9,985.43 +160.36 +1.63 %

CAC 40 4,378.75 +66.01 +1.53 %

Polish equity market surged on Tuesday. The broad market measure, the WIG index, rose by 2.25%. All sectors in the WIG gained, with utilities (+3.54%) and IT-sector (+3.46%) outperforming.

The large-cap stocks' measure, the WIG30 Index, gained 2.76%. Only two index constituents generated losses: coking coal producer JSW (WSE: JSW) dropped by 4.88% and FMCG wholesaler EUROCASH (WSE: EUR) declined by 3.45%. On the plus side, videogame developer CD PROJEKT (WSE: CDR) and bank HANDLOWY (WSE: BHW) were the biggest advancers, climbing by 6.89% and 6.42% respectively. Other noticeable risers were oil refiner LOTOS (WSE: LTS) and two gencos TAURON PE (WSE: TPE) and PGE (WSE: PGE), adding 4.8%-5.34%.

The Bank of Japan (BoJ) Governor Haruhiko Kuroda said in his speech notes on Tuesday that the BoJ's and the European Central Bank's (ECB) monetary policies would succeed in the near future.

"I believe that monetary policy in both the euro area and Japan will succeed in the near future, thereby starting a new chapter for macroeconomics," he said.

Kuroda noted that inflation in Japan improved, supported by the labour market. He added that the central bank is only halfway to its 2% inflation target.

Kuroda cancelled his participation in the conference organised by the Bank of France but his speech notes were published on the BoJ's website.

The National Institute of Economic and Social Research (NIESR) released its estimate of gross domestic product (GDP) for the U.K. on Tuesday. The GDP estimate rose by 0.6% in three months to December, after a 0.6% growth in three months to November.

According to the NIESR, the U.K. economy grew 2.2% in 2015, after a 2.9% rise in 2014.

"The slowdown in the economy last year was largely due to a sharp moderation in growth of the construction sector and public spending, exacerbated by weaker net trade. The year looks to have ended with reasonable growth, close to the economy's long-run potential. There is little spare capacity in the economy, and we expect the output gap to continue to close in 2016," Jack Meaning, NIESR Research Fellow, said.

The U.S. Bureau of Labor Statistics released its Job Openings and Labor Turnover Survey (JOLTS) report on Tuesday. Job openings rose to 5.431 million in November from 5.349 million in October. October's figure was revised down from 5.383 million.

The number of job openings climbed for total private (4.926 million) and for government (506,000) in November from October.

The hires rate was 3.6% in November.

Total separations increased to 4.930 million in November from 4.901 million in October.

The JOLTS report is one of the Federal Reserve Chair Janet Yellen's favourite labour market indicators.

The Federal Reserve said on Monday that it sent a record $97.7 billion of its estimated 2015 net income to the U.S. Treasury. The 2015 figures are preliminary and could be adjusted. Audited figures are expected to be published in March.

The Federal Reserve provided $96.9 billion to the U.S. Treasury last year.

Dallas Fed President Robert Kaplan said in a speech on Monday that it was the right decision to hike interest rates in December, adding that further interest rate hikes should be gradual and depend on the incoming economic data.

"I agree with, and argued for, the decision made in December by the FOMC to increase the federal funds rate … Future removals of accommodation will likely be done gradually and will depend on our ongoing assessment of incoming economic data and overall economic conditions," he said.

Kaplan pointed out that the slowdown in the Chinese economy could have a negative impact on the U.S. economy.

"Slower Chinese growth has the potential to further impact commodity prices and create headwinds for GDP growth in the U.S. and other economies," Dallas Fed president noted.

Japan's Cabinet Office released its consumer confidence index on Tuesday. The consumer confidence index rose to 42.7 in December from 42.6 in November, beating expectations for a decline to 42.3.

The increase was driven by rises in 2 of 4 sub-indexes. The overall livelihood sub-index increased to 41.1 in December from 40.9 in November, the income growth sub-index was up to 41.8 from 41.1, the employment sub-index fell to 46.3 from 46.7, while the willingness to buy durable goods sub-index remained unchanged at 41.6.

U.S. stock-index futures rallied.

Global Stocks:

Nikkei 17,218.96 -479.00 -2.71%

Hang Seng 19,711.76 -176.74 -0.89%

Shanghai Composite 3,023.19 +6.48 +0.21%

FTSE 5,970.8 +98.97 +1.69%

CAC 4,414.81 +102.07 +2.37%

DAX 10,057.88 +232.81 +2.37%

Crude oil $31.94 (+1.69%)

Gold $1088.50 (-0.70%)

The Bank of Japan released its bank lending data on late Monday evening. Bank lending in Japan increased 2.2% year-on-year in December, after a 2.3% gain in December.

Lending excluding trusts climbed 2.2% year-on-year in December.

(company / ticker / price / change, % / volume)

Upgrades:

Coca-Cola (KO) upgraded to Buy from Hold at Stifel; target $54

Intel (INTC) upgraded to Buy from Neutral at Mizuho; target $37

Apple (AAPL) upgraded to Buy from Neutral at BofA/Merrill; target $130

Downgrades:

Freeport-McMoRan (FCX) downgraded to Hold from Buy at Jefferies

Other:

Amazon (AMZN) target raised to $800 from $777 at Credit Suisse

Apple (AAPL) remains Top Pick for 2016 at Piper Jaffray; target $179, Overweight

Intel (INTC) resumed with a Overweight at JP Morgan; target $40

Alphabet A (GOOGL) target raised to $900 from $850 at Credit Suisse

Alcoa (AA) reported Q4 earnings of $0.04 per share (versus $0.33 in Q4 FY 2014), beating analysts' consensus of $0.01.

The company's revenues amounted to $5.245 bln (-17.8% y/y), generally inline with consensus estimate of $5.278 bln. Alcoa noted that its strong productivity gains were more than offset by lower aluminum and alumina prices, which fell by a respective 28% y/y and 43% y/y in 2015.

The company also announced that its business separation into two publicly traded cos is expected to be completed in the second half of 2016.

AA fell to $7.98 (-0.25%) in pre-market trading.

Japan's Cabinet Office released Eco Watchers' Index figures on Tuesday. Japan's economy watchers' current conditions index climbed to 48.7 in December from 46.1 in November, exceeding expectations for a rise to 46.7.

Japan's economy watchers' future conditions index remained unchanged at 48.2 in December.

A reading above 50 indicates optimism, while a reading below 50 indicates pessimism.

Stock indices traded higher as the Chinese stock markets seemed to stabilise. The People's Bank of China (PBoC) intervened in the offshore yuan market on Tuesday. The offshore yuan strengthened after the intervention. The price gap against the dollar with the onshore yuan was eliminated. The intervention helped to stabilised the markets.

The Office for National Statistics (ONS) released its manufacturing industrial production figures for the U.K. on Tuesday. Manufacturing production in the U.K. fell 0.4% in November, missing expectations for a 0.1% gain, after a 0.4% decrease in October.

Manufacturing output was mainly driven by a drop in basic pharmaceutical products and pharmaceutical preparations, which plunged by 4.9% in November.

On a yearly basis, manufacturing production in the U.K. decreased 1.2% in November, missing forecast of a 0.8% fall, after a 0.2% drop in October. October's figure was revised down from a 0.1% decrease.

Industrial production in the U.K. slid 0.7% in November, missing forecasts of a flat reading, after a 0.1% rise in October.

The decline was driven by a demand for energy. Electricity and gas output plunged 2.1% in November.

On a yearly basis, industrial production in the U.K. gained 0.9% in November, missing expectations for a 1.7% rise, after a 1.7% increase in October.

Current figures:

Name Price Change Change %

FTSE 100 5,935.25 +63.42 +1.08 %

DAX 10,053.27 +228.20 +2.32 %

CAC 40 4,401.66 +88.92 +2.06 %

The People's Bank of China (PBoC) intervened in the offshore yuan market on Tuesday. The offshore yuan strengthened after the intervention. The price gap against the dollar with the onshore yuan was eliminated. The intervention helped to stabilised the markets.

According to the British Retail Consortium (BRC) and KPMG sales monitor, the U.K. retail sales increased by an annual rate of 0.1% on a like-for-like basis in December, after a 0.4% decline in November.

On a total basis, retail sales climbed 1.0% year-on-year in December.

"2015 drew to a disappointing close for retailers, with December seeing just 1 per cent sales growth, notwithstanding the strong underlying momentum of an improving consumer environment buoyed by rising real incomes, low inflation and low unemployment," BRC Chief Executive, Helen Dickinson, said.

The Bank of France cuts its growth forecast for the fourth quarter on Tuesday. The central bank expects the French economy to expand 0.3% in the fourth quarter, unchanged from the previous estimate.

The manufacturing business confidence index increased to 99 in December from 98 in November.

The services business sentiment index remained unchanged at 96 in December.

The construction business sentiment index remained unchanged at 96 in December.

The Office for National Statistics (ONS) released its manufacturing industrial production figures for the U.K. on Tuesday. Manufacturing production in the U.K. fell 0.4% in November, missing expectations for a 0.1% gain, after a 0.4% decrease in October.

Manufacturing output was mainly driven by a drop in basic pharmaceutical products and pharmaceutical preparations, which plunged by 4.9% in November.

On a yearly basis, manufacturing production in the U.K. decreased 1.2% in November, missing forecast of a 0.8% fall, after a 0.2% drop in October. October's figure was revised down from a 0.1% decrease.

Industrial production in the U.K. slid 0.7% in November, missing forecasts of a flat reading, after a 0.1% rise in October.

The decline was driven by a demand for energy. Electricity and gas output plunged 2.1% in November.

On a yearly basis, industrial production in the U.K. gained 0.9% in November, missing expectations for a 1.7% rise, after a 1.7% increase in October.

Li Pumin, spokesman for China's National Reform and Development Commission (NDRC), said on Tuesday that China achieved its main economic targets in 2015. The economy likely expanded 7.0% in 2015 and added 13 million new jobs.

Official fourth-quarter and full-year 2015 figures will be released on Monday.

Atlanta Fed President Dennis Lockhart said after a speech in Atlanta on Monday that there will be not enough data on inflation to raise interest rate in January or March.

""How much will we know about inflation trends or developments going into the mid-March meeting? We will have some new data but not a great deal more," he said.

Lockhart pointed out in his speech that he does not think turmoil abroad will have impact on the U.S. economy.

"When such volatility develops, I think it's helpful to look at the real economy of the United States (as opposed to the financial economy) and ask if something is fundamentally wrong. Are there serious imbalances that make the broad economy vulnerable to foreign shocks? I don't see that kind of connection in current circumstances," Atlanta Fed president noted.

Japan's Ministry of Finance released its current account data for Japan late Monday evening. Japan's current account surplus fell to ¥1,143.5 billion in November from ¥1,458.4 billion in October, beating expectations for a surplus of ¥858.5 billion.

The goods trade surplus turned into a deficit of ¥271.5 billion in November, down from a surplus of ¥200.2 billion in October.

Exports dropped at an annual rate of 6.3% in November, while imports plunged 10.9%.

U.S. stock indices climbed from session's lows to close mixed.

The Dow Jones Industrial Average gained 52.12 points, or 0.3%, to 16,398.57. The S&P 500 climbed 1.64 point, or less than 0.1%, to 1,923.67. The Nasdaq Composite edged down 5.64 points, or 0.1%, to 4,637.99.

Stocks were partly influenced by comments by a Federal Reserve's official, who said that worsening of the economic situation overseas does not undermine strength of the U.S. economy. These words pointed to a possibility of an additional rate hike this year.

This morning in Asia Hong Kong Hang Seng declined 0.30%, or 60.48, to 19,828.02. China Shanghai Composite Index rose 0.73%, or 22.08, to 3,038.79. The Nikkei lost 2.76%, or 488.14, to 17,209.82.

Asian stocks traded mixed. Japanese stocks fell amid global selloff seen in the last few days and a stronger yen.

Chinese stocks rose after a governmental official expressed optimism about the country's economic growth and inflation.

(index / closing price / change items /% change)

Hang Seng 19,888.5 -565.21 -2.76 %

Shanghai Composite 3,018 -168.42 -5.29 %

FTSE 100 5,871.83 -40.61 -0.69%

CAC 40 4,312.74 -21.02 -0.49 %

Xetra DAX 9,825.07 -24.27 -0.25 %

S&P 500 1,923.67 +1.64 +0.09 %

NASDAQ Composite 4,637.99 -5.64 -0.12 %

Dow Jones 16,398.57 +52.12 +0.32 %