United States ISM PMI Rise More Than Expected

News Event

From Trading Economics: The Institute for Supply Management’s Manufacturing PMI rose to 51.9 in October 2016 from 51.5 in September, above market expectations of 51.7. It was the highest reading in three months, as employment rebounded sharply and output grew further, while new orders expanded at a slower pace. Business Confidence in the United States averaged 52.77 from 1948 until 2016, reaching an all time high of 77.50 in July of 1950 and a record low of 29.40 in May of 1980. Business Confidence in the United States is reported by the Institute for Supply Management.

Market Snap

Market Closing Wrap

In European Equity Markets stocks edged lower in choppy trade on Tuesday, set for a seventh straight session of falls, with Shell and BP heading in opposite directions after both oil majors reported quarterly results. The STOXX Europe 600 was down 0.3 percent, after falling 1.1 percent in October.  Royal Dutch Shell rose 3 percent after the oil major reported an 18-percent rise in underlying net profit, beating analysts' forecasts and saying that next year's capital spend will be at the bottom end of the expected range. The move in Shell contrasted with BP, which was down 3.11 percent. Top riser was Moneysupermarket Group, up 7.1 percent and set for its best day in three years after the price comparison site reported strong trading and revenue growth.

In Currency Markets the U.S. dollar hit its lowest level in more than two weeks against the euro on Tuesday on U.S. political uncertainty, while the Mexican peso hit a more than three-week low on positioning for a potential victory for Republican presidential candidate Donald Trump. The euro gained about 0.6 percent against the dollar to a more than two-week high of $1.1046. The dollar fell about 0.9 percent against the Swiss franc to a more than three-week low of 0.9797 franc and fell about 0.3 percent against the yen  to a session low of 104.52 yen. The Mexican peso fell about 1.3 percent against the greenback to 19.1102 pesos per dollar, its weakest level since Oct. 7.

In Commodities Markets oil prices edged higher on Tuesday as a weaker dollar boosted greenback-denominated commodities, although worries that OPEC will not do much to reduce a global glut kept the market near one-month lows.  Brent crude was up 33 cents at $48.94 a barrel. It traded as low as $48.51 earlier, after losing nearly 3 percent the day before in the biggest one-day fall since Sept. 23. U.S. West Texas Intermediate crude rose 24 cents to $47.10. WTI's session low was $46.56, after a near 4 percent fall on Monday. Spot gold hit its highest since early October at $1,289.53 an ounce and was up 0.8 percent at $1,287.40 an ounce. Silver was up 2.8 percent at $18.37 an ounce, having peaked at $17.88.

In US Equity Markets stocks fell in late morning trading on Tuesday amid uncertainty surrounding the U.S. presidential election and tepid construction spending data. The S&P 500 lost 0.17 percent, at 2,122.45 and the Nasdaq Composite fell 0.19 percent, at 5,179.45. Seven of the 11 major S&P sectors were lower, with the utilities index's 0.66 percent fall leading the decliners. Pfizer fell 1 percent after the drugmaker's quarterly profit fell below expectations. L Brands fell 8.5 percent after a host of brokerages cut their price targets on the stock. Coach rose 4.9 percent after reporting a jump in quarterly profit. Construction spending in September unexpectedly fell, which could lead to a mild downward revision to the third-quarter economic growth estimate.

In Bond Markets U.S. Treasury yields rose on Tuesday, giving back gains from Monday when month-end rebalancing boosted demand for the bonds, as investors waited on the completion of the Federal Reserve's meeting on Wednesday. Treasuries ended October on a firm note even as benchmark 10-year notes posted their worst monthly performance since February 2015. Ten-year notes were last down 9/32 in price to yield 1.87 percent, up from 1.83 percent on Monday.

Source: Institute of Trading and Portfolio Management