In US economic data, the ‘flash’ S&P Global composite purchasing managers index (PMI) rose from 45 to 46.6 in
January. The manufacturing PMI rose from 46.2 to 46.8 (survey: 46). The services PMI rose from 44.7 to 46.6 (survey: 45). The Richmond manufacturing index fell from +1 to -11 in January (survey: -5). Chain store sales in the past week were up 4.6% on a year ago, down from the 5% gain in the prior week.
European share markets fell on Tuesday. The euro-zone composite purchasing managers index surprisingly rose from 49.3 to 50.2 in January. Traders fear that the European Central Bank may have more scope to lift rates in response to a stronger than-expected economy. Energy and Healthcare sectors fell by 1.3%. Reuters report that shares in Swatch Group rose 5.1% after the world’s biggest watchmaker said it expected a recovery in luxury demand from China. The continent-wide FTSEurofirst 300 index fell by 0.3%. The UK FTSE 100 index fell by 0.4%.
US share markets were mixed on Tuesday as investors digested earnings figures. There was also a technical glitch shortly after the opening bell that briefly halted trading. After releasing latest results, shares in 3M fell by 6.2%; Verizon rose by 2.0%; General Electric rose by 1.2%; and shares in Travelers rose by 3.7%. Shares in semiconductors eased in response to profit-taking. At the close of trade the Dow Jones index was higher by 104 points or 0.3%. The S&P 500 index fell by 0.1%. And the Nasdaq index lost 30 points or 0.3%.
US government bonds rose on Tuesday (yields lower). US 10- year treasury yields fell by 6 points to 3.46%. US 2-year yields fell by 3 points to 4.21%.
Major currencies were mixed against the US dollar in European and US trade. The Euro fell from near US$1.0895 to
US$$1.0840 and was near US$1.0880 in late US trade. The Aussie dollar lifted from near US69.95 cents to near US70.55 cents and was around US70.45 cents in late US trade. And the Japanese yen eased from 129.75 yen per US dollar to JPY131.07 and was near JPY130.15 in late US trade.
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Global oil prices fell by around 2% on Tuesday. Investors continued to debate prospects for oil demand with uncertainty on the outlook for the Chinese economy. Also weighing on prices was the upcoming report on US oil inventories with stocks expected to have lifted by 1 million barrels in the past week. The Brent crude oil price fell by US$2.06 or 2.3% to US$86.13 a barrel. And the US Nymex crude oil price fell by US$1.49 or 1.8% to US$80.13 a barrel.
Base metal price futures prices were mixed on Tuesday. The US aluminium futures price rose by 0.5%. But the US copper futures price fell by 0.3%.
The gold futures price rose by US$6.80 or 0.4% to US$1,935.40 an ounce. Spot gold was trading near US$1,937 an ounce in late US trade. Iron ore futures rose by US3 cents a tonne to US$121.97 a tonne.
In Australia, the Consumer Price Index is released.
In the US, the weekly mortgage finance data is issued.
On Thursday in the US, economic growth, durable goods orders, weekly jobless claims, goods trade, new home sales,
the Kansas Fed and Chicago Fed surveys and inventories data are all released.
Originnally published by CommSec