In US economic data, the New York Empire State manufacturing index fell from -1.5 points to -9.1 points in October (survey: -4.1).
European sharemarkets rose for a third straight session on Monday. Investor sentiment was boosted by news of the reversal of Britain’s fiscal plan. The plan had led to market turmoil and forced the Bank of England to intervene. Real estate rose 4%, travel & leisure rose 3.3% and banks added 2.3%. Reuters reported that shares in Credit Suisse rose 2.6% as the Swiss bank approached at least one Middle Eastern sovereign wealth fund for a capital injection. The continent-wide FTSEurofirst 300 index gained 1.8%. And the UK FTSE 100 index added 0.9%.
US sharemarkets lifted on Monday. US stocks were supported by news of the reversal of a proposed UK fiscal plan as well as encouraging US bank earnings figures. Shares in Bank of America rose 6.1% after the lender reported a surge in third quarter net interest income. Shares in Bank of New York Mellon also lifted by 5.1% as the lender reported a 44% lift in net interest revenue. The banks sector rose 3.6%. Mega cap growth stocks like Amazon (up 6.5%) and Apple (up 2.9%) also advanced. The Dow Jones index rose by 551 points or 1.9%. The S&P 500 index rose by 2.7%. And the Nasdaq index rose by 354 points or 3.4%.
US shorter-term treasuries rose on Monday (yields lower). Global bond yields eased after new UK finance minister Jeremy Hunt reversed most of Prime Minister Liz Truss’s economic growth plan. US 10-year yields rose by 2 points to near 4.02%. But US 2-year yields fell by around 5 points to near 4.46%.
Major currencies were generally firmer against the US dollar in European and US trade. The Euro rose from lows near US$0.9720 to highs near US$0.9850 and was near US$0.9835 at the US close. The Aussie dollar rose from lows near US62.30 cents to lows near US63.10 cents and was near US62.85 cents at the US close. But the Japanese yen eased from 148.57 yen per US dollar to JPY149.07 and was near the weakest levels at the US close.
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Global oil prices fell modestly on Monday. Fears of a global economic slowdown were balanced by expectations of increased energy supply. Reuters reported “a senior Chinese National Energy Administration official said on Monday that the country will greatly increase domestic energy supply capacity and step up risk controls in key commodities including coal, oil, gas and electricity.” China will further increase reserve capacities for key commodities, another state official told a news conference in Beijing. The Brent crude oil price fell by US1 cent or less than 0.1% to US$91.62 a barrel. And the US Nymex crude oil price lost US15 cents or 0.2% to US$85.46 a barrel.
Base metal prices fell by as much as 3.4% on the London Metal Exchange (LME) on Monday with aluminium down the most while copper only fell by 0.1%. Aluminium fell by 3.4% in response to data showing large deliveries to warehouses approved by the LME.
The gold futures price rose by US$15.10 an ounce or 0.9% to US$1,664 an ounce. Spot gold was trading near US$1,651 an ounce at the US close. Iron ore futures fell by US$1.00 or 1.0% to US$94.93 a tonne.
Originally published by CommSec