Japan Machinery Orders Fell in August

News Event

From Trading Economics: Machinery orders in Japan fell 2.2 percent month-on-month in August of 2016, following a 4.9 percent growth in July while market expected a 5.5 percent fall. It was the first drop since May as orders from manufacturing sector declined by 4.0 percent, followed by those from non-manufacturing (-1.9 percent). Compared to a year earlier, machinery orders increased by 11.6 percent, following a 5.2 percent growth in a month earlier, beating consensus of a 6.5 percent gain.

Market Snap

Market Closing Wrap

In European Equity Markets stocks closed slightly lower on Tuesday, weighed down by weaker commodity stocks, while stocks of major luxury goods companies rose after strong figures from LVMH. The pan-European STOXX 600 index fell 0.5 percent. Europe's STOXX Oil & Gas index fell 1.5 percent, making it the second biggest sectoral loser in Europe after the STOXX Basic Resources index, which fell 2.1 percent, as metal prices retreated. LVMH outperformed, rising 4.5 percent after the company reported a forecast-beating acceleration in third-quarter sales. Rival luxury good stocks such as Christian Dior, Richemont and Burberry also advanced to feature among Europe's best-performing stocks.

In Currency Markets the dollar hit an 11-week high on Tuesday as investors increased bets that the Fed would raise interest rates in December following a round of generally solid U.S. economic data over the last few weeks. The euro fell to a more than two-month low against the dollar, and was last down 0.6 percent at $1.1077. Against the yen, the dollar was flat at 103.65,  but has gained more than two percent so far this month. The British pound, which has weakened for four straight sessions, fell 0.8 percent to $1.2257. Against the Swiss franc, the dollar gained 0.52 percent to $0.9877. The dollar index jumped 0.5 percent to 97.450, after hitting its highest since late July.

In Commodities Markets  oil fell almost 2 percent on Tuesday, retreating from one-year highs, after mixed responses by Russian oil industry officials toward an OPEC call for all major crude producers to cut output. The International Energy Agency also said it was unclear how rapidly global oil supply could fall in line with demand even if Russia and the OPEC agreed on a steep cut. Brent crude oil was down 1.9 percent, at $52.14 a barrel, off the one-year high of $53.73 hit on Monday. U.S. West Texas Intermediate crude fell 1.8 percent, to $50.45. Spot gold had fell 0.3 percent to $1,256.05 an ounce, while silver was down 0.7 percent at $17.51 an ounce. Platinum was 0.3 percent lower at $957.40 an ounce and palladium fell 1.5 percent to $655.30.

In US Equity Markets  stocks fell on Tuesday, dragged down by healthcare companies and Alcoa, which kicked off the earnings season on a disappointing note. The S&P 500 was down 0.4 percent, at 2,154.91 and the Nasdaq Composite was down 0.29 percent, at 5,313.09. All of the 11 major S&P 500 indexes were lower, with materials falling the most by 1.08 percent. Apple rose 2.1 percent after rival Samsung said it would scrap its Galaxy Note 7 smartphones due to safety concerns.  Rent-A-Center fell 34.4 percent after the company estimated third-quarter earnings to fall below analysts' expectations. JinkoSolar rose 4.2 percent after the solar cell maker entered into an agreement for the sale of its Jinko Power downstream business in China.

In Bond Markets U.S. Treasury yields rose on Tuesday with benchmark 10-year notes hitting their highest since June 3 as risk appetite returned to markets following Friday's largely in-line U.S. nonfarm payrolls report and Russia's announcement it would cut oil production in line with OPEC. Benchmark U.S. 10-year Treasury notes were down 12/32 in price to yield 1.78 percent. The 30-year Treasury bond fell 29/32 in price to 2.51 percent.

Source: Institute of Trading and Portfolio Management