United Kingdom Inflation Rate Rose to Nearly 2-Year High

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From Trading Economics: United Kingdom consumer prices rose 1 percent in the year to September 2016, following a 0.6 percent growth in August and above markets expectations of a 0.9 percent gain. It was the highest inflation rate since November 2014 amid rising prices for clothing, overnight hotel stays and motor fuels, and a weaker pound. Inflation Rate in the United Kingdom averaged 2.59 percent from 1989 until 2016, reaching an all-time high of 8.50 percent in April of 1991 and a record low of -0.10 percent in April of 2015. Inflation Rate in the United Kingdom is reported by the Office for National Statistics.

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In Asian Equity Markets Japan's Nikkei index edged up on Tuesday, helped by buying in stocks which are sensitive to domestic demand, but gains were limited as the yen inched higher, keeping investors on edge. The Nikkei rose 0.2 percent to 16,928.31 points by midmorning, after trading in negative territory earlier. The broader Topix was flat at 1,352.99 and the JPX-Nikkei Index 400 was also flat at 12,106.65. MSCI's broadest index of Asia-Pacific stocks outside Japan gained 0.8 percent, extending earlier gains. Australia's benchmark index was up 0.4 percent. China's B share market bounced 1.5 percent after tumbling more than 6 percent on Monday on concerns of extended yuan weakness while Hong Kong shares rose, led higher by financials and utilities.

In Currency Markets the dollar took a breather from its recent gains on Tuesday, edging away from seven-month highs against a currency basket as investors took stock of U.S. interest rate expectations in coming months. The euro added 0.2 percent to $1.1017, moving away from a nearly three-month low of $1.0962 hit on Monday, as investors looked ahead to the ECB's policy meeting later this week.  Against the yen, the euro climbed 0.2 percent to 114.47 yen. Recently battered sterling added 0.3 percent to $1.2220. The Australian dollar gained 0.5 percent to $0.7665, getting a tailwind from its U.S. counterpart's weakness and from Reserve Bank of Australia Governor Philip Lowe, who said he was comfortable with the current exchange rate.

In Commodities Markets oil prices rose early on Tuesday as some analysts said markets might not be quite as oversupplied as suggested by many, with global inventories rising less than expected ahead of the high-demand winter heating season in the northern hemisphere.  Brent crude was at $51.82 per barrel, up 30 cents from the previous close. U.S. West Texas Intermediate crude was up 29 cents at $50.23 a barrel. Spot gold was up 0.2 percent at $1,258.68 an ounce. U.S. gold futures had risen 0.3 percent to $1,259.80 an ounce. Silver was up 0.8 percent at $17.57 a ounce. Platinum rose 0.3 percent to $940. It touched a new over 7-month low of $923 on Monday. Palladium was up nearly 1 percent at $643.20.

In US Equity Markets stocks  ended modestly lower on Monday as energy stocks retreated along with oil prices, while Amazon and Netflix weighed on the consumer discretionary sector. The Dow Jones industrial average fell 0.29 percent, to 18,086.4. The S&P 500 lost 0.3 percent, to 2,126.5 and the Nasdaq Composite fell 0.27 percent, to 5,199.82. Bank of America Corp  shares edged up 0.3 percent as its profit rose for the first time in three quarters and topped estimates. Netflix Inc fell 1.6 percent ahead of its expected quarterly results, while Amazon.com Inc lost 1.2 percent, for its third straight decline, which pulled the consumer discretionary sector 0.8 percent lower.

In Bond Markets  Japanese government bond prices fell on Tuesday, weighed down by caution as U.S. and euro zone yields remained elevated near multi-month highs. The benchmark 10-year JGB yield rose half a basis point to minus 0.055 percent. The 30-year yield was also up half a basis point, at 0.505 percent. German Bund yields were at their highest since the Brexit referendum in June, driven in part by a steep climb in British gilt yields.

Source: Institute of Trading and Portfolio Management