By IFCMarkets
US stocks advance on positive economic reports
US stocks closed higher on Tuesday as investor confidence was boosted by first presidential debate and positive economic data. The dollar inched higher: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, ended 0.16% higher at 95.427 Tuesday.
The Dow Jones industrial average advanced 0.7% to 18228.30 led by shares of Microsoft and IBM. The S&P 500 added 0.7% settling at 2159.93 led by tech and consumer-discretionary stocks. The Nasdaq index rose 0.9% to 5305.71. Analysts point that the gain in equities after the first presidential debate suggests markets are more comfortable with the lead of Democratic candidate Clinton over Republican Trump as Clinton is viewed a known quantity while Trump is perceived as more unpredictable. A higher than expected consumer confidence also helped boost market sentiment: consumer confidence rose to 104.1 in September, the highest level since August 2007. Another positive development was higher than expected flash Services Purchasing Managers Index reported by Markit: it rose to 51.9 in September from 51 in August. At the same time the Case-Shiller home price index rose 5% for the year in July after 5.1% gain in June. Following Federal Reserve’s decision to leave monetary policy unchanged presidential election politics is going to be a source of uncertainty driving market volatility together with incoming economic reports. Today at 13:00 CET Mortgage Applications will be released by the Mortgage Bankers’ Associations in US. At 14:30 CET August Durable Goods Orders will be published, the tentative outlook is negative for dollar. At 16:00 CET Janet Yellen testifies before the Committee on Financial Services. And at 16:00 CET the Federal Reserve Bank of St. Louis President James Bullard will speak at bank’s conference.
European stocks get a boost from US Presidential debates
European stocks closed marginally higher on Tuesday with falling financial and energy stocks limiting early gains following an apparent Clinton win over Trump in first US presidential debates. The euro weakened against the dollar while the British Pound ended higher.
The Stoxx Europe 600 index inched 0.06% higher. Energy stocks were the worst performers as it became apparent Iran and Saudi wouldn’t agree on a deal to cut oil output. Shares in Spain’s oil producer Repsol fell 2.4%, oilfield services and equipment producer Petrofac lost 1.9%. Deutsche Bank shares ended little changed paring small gains after the US Justice Department’s third highest-ranking official said banks can lower penalties by cooperating with authorities. Shares of Volkswagen, another major German company involved in a lawsuit brought by US authorities, fell 2.1% on news the US Justice Department was calculating how much of a criminal fine it can impose on the car maker for cheating emissions without putting it out of business. The DAX 30 lost 0.3% to 10363.48 while the CAC 40 slipped 0.2%. UK.’s FTSE 100 fell 1.3% settling at 6818.04. Today October Gfk survey results in Germany came in lower than expected with Consumer Confidence declining to 10.0 from 10.2 in September. At 16:30 CET ECB President Draghi speaks about euro-zone economy at German Bundestag.
Japanese market leads Asian stocks lower
Asian stocks are falling today with Japanese stocks leading the decline as yen inched higher against the dollar and bank stocks were pressured by recurrent concerns about the damaging effect of negative rates on earnings of financial companies. The Nikkei finished 1.3% lower at 16465.40 today, with ex-dividend price adjustment contributing to index’s fall. Chinese stocks are retreating too as investors are sceptical about the sustainability of recent recovery that many attribute to government stimulus.The Shanghai Composite Index is 0.3% lower with Hong Kong’s Hang Seng index down 0.2%. Australia’s All Ordinaries Index gained 0.1% with Australian dollar inching higher against the greenback.
Drop in US crude inventories lifts oil
Oil futures prices are inching higher today in a mixed trading after a surprise drop in US stockpiles last week according to a report late Tuesday by the industry group American Petroleum Institute. The API reported a 752 thousand barrel surprise draw to 506.4 million barrels in US crude stockpiles last week. Prices dropped yesterday after Iran rejected an offer from Saudi Arabia to limit its oil output in exchange for Riyadh cutting supply. Investors have little hope an agreement will be reached at an informal meeting of OPEC and non-OPEC producers on the sidelines of three-day International Energy Forum in Algiers which ends on Wednesday. November Brent crude finished 2.9% lower at $45.97a barrel on London’s ICE Futures exchange on Tuesday. Today at 16:30 CET US Crude Oil Inventories will be released by the Energy Information Administration.
Precious metals retreat
Gold is extending losses today as dollar continues the rebound after the first Presidential debates yesterday. A stronger dollar makes dollar-denominated gold more expensive for buyers who use other currencies. Spot gold is down 0.3% at $1323.21 after falling almost 1% on Tuesday, continuing the consolidation that started ahead of Federal Reserve policy meeting. Platinum has retreated 0.2% to $1021.95 an ounce, spot silver is off 0.5% to $19.145 an ounce.
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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
