In US economic data, the Conference Board consumer confidence index fell from 107.8 to 102.5 in October (survey: 106). The Richmond Fed manufacturing index eased from 0 to -10 in October (survey: -5). S&P CoreLogic Case-Shiller home prices fell by 1.6% in August (survey: -0.7%). The FHFA house price index fell by 0.7% in August (survey: -0.3%). Redbook chain store sales rose by 8.2% in the past week on a year ago.

European mainland sharemarkets rose on Tuesday in response to better-than-expected earnings results. Amongst the gainers were business software maker SAP, up 6.5%. And shares in computer peripherals maker Logitech rose by 12.5%. Real estate, technology and financial sectors led the gains. Financials were led by a 7.7% lift in shares of UBS after the Swiss bank beat expectations for its quarterly profit. The continent-wide FTSEurofirst 300 index closed up by 1.4%. But the UK FTSE 100 index was flat.

US sharemarkets advanced on Tuesday with investors awaiting earnings from Microsoft and Alphabet. Economic data was softer, highlighting the impact of higher interest rates and adding to speculation of a winding back of the size of rate hikes. Shares in companies reporting earnings were firmer with Coca Cola up 2.4% and General Motors up 3.6% while 3M rose 0.1%. Shares in Apple and Amazon rose ahead of earnings results later in the week. So far,
nearly three quarters of the 129 companies in the S&P 500 have exceeded profit estimates, according to Refinitiv data. The Dow Jones index closed up by 337 points or 1.1%. The S&P 500 index gained 1.6% and the Nasdaq index rose by 246.5 points or 2.3%.

US treasuries rose on Tuesday (yields lower) in response to softer economic data. The US Treasury sold US$42 billion of 2-year notes into weak demand at a yield of 4.46%. US 10-year yields fell around 15 points to near 4.085%. And US 2-year yields fell by around 3 points to near 4.47%.

Major currencies were stronger against the US dollar in European and US trade. The Euro rose from lows near US$0.9850 to highs near US$0.9975 and was near US$0.9965 at the US close. The Aussie dollar rose from lows near US63.05 cents to highs near US64.10 cents and was near US63.95 cents at the US close. And the Japanese yen firmed from 149.00 yen per US dollar to JPY147.50 and was near JPY147.90 at the US close.

 

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Global oil prices rose by almost 1% on Tuesday. The US dollar index fell, making dollar-denominated oil less expensive for other currency holders and helping to push prices higher. Prices were also supported by supply concerns raised by Saudi Arabia’s energy minister. But downward pressure on prices was applied by weaker
economic data in Europe and the US. The Brent crude oil price rose by US26 cents or 0.3% to US$93.52 a barrel. And the US Nymex crude oil price rose by US74 cents or 0.9% to US$85.32 a barrel.

Base metal prices were mixed on Tuesday. Zinc, lead and copper fell by as much as 2.2% with zinc down the most. Other metals rose by as much as 2.6% with aluminium up the most.

The gold futures price rose by US$3.90 an ounce or 0.2% to US$1,658.00 an ounce. Spot gold was trading near US$1,657 an ounce at the US close. Iron ore futures rose by US10 cents or 0.1% to US$94.61 a tonne.

Originally published by CommSec