In US economic data, the Chicago purchasing managers index fell from 45.7 to 45.2 in October (survey: 47). The Dallas Federal Reserve manufacturing index eased from -17.2 to -19.4 in October (survey: – 18).
European sharemarkets were firmer on Monday. Shares of Credit Suisse rose 5.2% as it unveiled details of its plan to raise 4 billion Swiss francs (US$4.01 billion) from investors. Reuters notes travel and leisure stocks rose 1.3%, after shares in International Consolidated jumped 5.4% “as a Times report stated that it will renew its EU consolidation plans”. The continent-wide FTSEurofirst 300 index rose by 0.3% to fresh 6-week highs. And the UK FTSE 100 index rose by 0.7%.
US sharemarkets fell on Monday as investors became cautious ahead of the US Federal Reserve rate decision on Wednesday. Information technology and communication services led the declines. Shares in Apple dropped 1.5% on a Reuters report that said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China. The Dow Jones index lost 129 points or 0.4%. The S&P 500 index fell by 0.8% and the Nasdaq index fell by 114 points or 1.0%. In October, the Dow jumped 14.0% – its best month since 1976; the S&P 500 was up 8.0%; and the Nasdaq lifted 3.9%.
US treasuries fell on Monday (yields higher). US Federal funds futures are pricing in a 97.7% likelihood that the Federal Reserve will raise rates by 75 basis points at the end of its two-day policy meeting on Wednesday. US 10-year yields rose by around 4 points to 4.05%. And US 2-year yields rose by around 6 points to 4.48%.
Major currencies were weaker against the US dollar in European and US trade. The Euro fell from US$0.9960 to US$0.9870 and was near US$0.9880 at the US close. The Aussie dollar fell from highs near US64.25 cents to lows near US63.70 cents and was near US63.95 cents at the US close. The Japanese yen eased from 147.75 yen per US dollar to JPY148.85 and was near JPY148.70 at US close.
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Global oil prices fell on Monday. Data showed that US oil output climbed to nearly 12 million barrels per day in August, the highest since the onset of the COVID-19 pandemic. At the same time there were fresh Covid-19 restrictions in China. And data showed that Chinese manufacturing and services sector activity declined in October. US President Biden will make a statement on high oil prices later on Monday. The Brent crude oil price fell by US94 cents or 1.0% to US$94.83 a barrel. And the US Nymex crude oil price lost US$1.37 or 1.6% to US$86.53 a barrel.
Base metal prices fell on Monday by between 1.3% and 4.2% with zinc down the most. But aluminium bucked the trend, up 0.7%..
The gold futures price fell by US$4.10 an ounce or 0.2% to US$1,640.70 an ounce. Spot gold was trading near US$1,633 an ounce at the US close. Iron ore futures fell by US58 cents or 0.6% to US92.43 a tonne.
Originally published by CommSec