President Biden is considering Sarah Bloom Raskin for a top role at the Federal Reserve as part of a slate of three nominees for central bank board seats, according to people familiar with the matter. The administration is eyeing Ms. Raskin, a former Fed governor and former Treasury Department official, to become the central bank's vice chairwoman of supervision, the government's most influential overseer of the American banking system, the people said. Mr. Biden is also considering two economists for other Fed board seats that will soon be vacant: Lisa Cook, a professor of economics and international relations at Michigan State University; and Philip Jefferson, a professor and administrator at Davidson College in North Carolina. Ms. Raskin's nomination could mollify progressive Democrats, some of whom opposed Mr. Biden's decision in November to offer a second term to Fed Chairman Jerome Powell, a Republican first chosen for the top job by former President Donald Trump. They have called for the Fed to take a tougher stance in regulating big banks and a bolder approach in addressing financial risks posed by climate change.

The SMI climbed to a new record high, gaining 0.8 percent to 12,971 points. Among the 20 SMI stocks, there were 19 price gainers and one loser. 15.18 (previously: 16.81) million shares were traded. Among individual stocks, Clariant rose 0.4 percent. The company signed a definitive agreement to buy BASF SE's U.S. Attapulgite business for $60 million. In 2020, the Attapulgite business generated sales of roughly $36 million. The transaction is expected to improve the EBITDA margin profile and help Clariant towards its recently announced 2025 targets, the company said. The market found solid support in defensive heavyweights Nestle, Novartis and Roche, which rose between 0.8 and 1.1 percent. The strongest SMI mover was Givaudan with plus 1.4 percent, the lowest price point was Logitech with minus 0.3 percent.

The Stoxx Europe 600 index rose 0.6% to 488.6 points. In Paris the CAC 40 set a new closing record at 7,181.1 points, after setting a new session high at 7,187.8 points, while the SBF 120 gained 0.5%. The DAX 40 in Frankfurt gained 0.8%. The London Stock Exchange was closed again on Tuesday. The oil and gas companies Vallourec (+2%), CGG (+2.3%) and TechnipFMC (+1.1%), were buoyed by rising oil prices. The share price of the catering group Sodexo fell by 1.1% after the French government announced the return of compulsory teleworking for companies. Its competitor Elior finished stable. In Frankfurt, the German group BASF (+0.7%) announced on Tuesday that it had signed an agreement to sell its Attapulgite activities in the United States to the Swiss chemical company Clariant (+0.5% in Zurich) for 60 million dollars.

U.S. stock indexes were mixed Tuesday, a day after a record close for the S&P 500 amid lower liquidity in the last days of the year. The S&P 500 swung between small gains and losses, touching a new intraday high in morning trading, after the broad-market index rallied 1.4% on Monday. It finished down 4.84 points, or 0.1%, to 4786.35. The Dow Jones Industrial Average rose 95.83 points, or 0.3%, to 36398.21. The Nasdaq Composite fell 89.5 points, or 0.6%, to 15781.72. Stocks have been buffeted by the spread of the Omicron variant in recent weeks as governments around the world have imposed restrictions to try to curb coronavirus infections. But some recent studies have suggested the variant might result in milder illness with lower risk of hospitalization. The Centers for Disease Control and Prevention reduced the recommended isolation period for some people who test positive to try to minimize disruptions. Still, many economists have lowered their forecasts for economic growth in the first quarter of next year. Governments and policy advisers are showing signs of taking a lighter touch with policies regarding the rapidly spreading Omicron variant, reducing quarantine times and in some instances forgoing social-distancing restrictions as they try to keep economies moving. Vaccine makers gave up gains from earlier in the session, with Novavax declining 1.2% and Moderna down 2.2%. The news has helped shares of travel and energy companies, with United Airlines up 1.6% and Valero Energy up 1.9%. The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, showed U.S. home-price growth slowed in October. Shares of home builders edged higher during Tuesday’s session, with D.R. Horton advancing 0.7% and Taylor Morrison rising 0.8%.

In Asia, major indexes closed with losses. The Chinese stock exchanges are among the laggards along with Tokyo. Shanghai and Hong Kong report declines of 0.9 and 1.0 percent for the respective leading indices. In the technology sector, Alibaba and Meituan in Hong Kong both lose over 2 percent. The Tokyo Stock Exchange also extended its losses, with the Nikkei-225 falling 0.8 percent. Technology and electronics stocks weigh on the market. In Seoul, the Kospi drops 0.6 percent. Investors sold mainly shares from the financial and retail sectors following dividend payments.

U.S. Treasury yields were mixed Tuesday, with the 2-year maturity at a new 52-week high. Investors remained hopeful that the omicron variant of COVID would have limited economic impact, with that belief helping to lift the Dow industrials while limiting appetite for Treasurys. The yield on the benchmark 10-year Treasury note rose one basis point, to 1.485%.

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