Noor Trends News, Technical Analysis, Educational Tools and Recommendations
WTI US crude oil rises during the New York session, trading at $84.30. The market sentiment has remained positive as U. S. shares are supported by U. S. Q3 solid corporate earnings, which helped ease investors’ nervousness around high inflation and central bank monetary policy tightening.
In the meantime, the US Dollar Index, whose price influences commodity prices, is rising 0.18%, settling at 93.98.
Corporate earnings reports, despite shortages and supply chain bottlenecks, constitute the main market driver all through the U. S. trading session on Tuesday, with some economic indicators whose positive readings contributed to a significant improvement in risk appetite across global financial markets.
Investors’ optimism was due to a couple of reasons; firstly, corporate earnings reports including Lockheed Martin, Facebook earnings reports, and secondly, the economic data released today to reflect the positive performance of the manufacturing and housing sectors in the United States.
US stocks closed on Tuesday’s trading session within uptrend, limited gains could be reaped by the U. S. dollar, which was unable to expand further gains due to the improvement of risk appetite.
Economic Data
The index of U.S. consumer confidence rose to 113.8 in October from a revised 109.8 in September. The index has risen in October for the first time in four months, since June to 113.8 as concerns around the delta variant eased.
The U. S. CB Consumer Confidence also unexpectedly bounced in October, at 113.8 from an upwardly revised 109.8.
The Conference Board’s index advanced to 113.8 from an upwardly revised 109.8 reading in September, according to the group’s report Tuesday. Economists had forecast a decline to 108. Plans to buy cars, homes, appliances and vacations rose as well.
Consumer spending represents about 70% of all economic activity in the U.S., so economists pay close attention to the figures for a better understanding of the future track of the national economy.
The reading of the Richmond manufacturing index rose to 12 points in October, compared to -3.00 points in September, above market expectations with estimates of only 3 points.
New home sales in the United States also showed an increase to 0.8 million units last September, compared to the previous month’s reading of 0.72 million units, also above market expectations with estimates of only 0.76 million units.
The change in new home sales last month was 14% compared to the change recorded in the previous month at -1.4%, which exceeded market expectations of 1.5%.
Other Developments
New positive earnings reports were released, including Microsoft, General Electric, Alphabet and Twitter, which were overall positive, suggesting that U. S. shares and other risk assets could continue to rise on Wednesday.
GBP/USD settled around 1.3760. The pair received additional pressure from comments by European Commissioner for the Internal Market Thierry Breton, who said on Tuesday that Brexit has led to an economic catastrophe for Britain.
The Bank of Canada is having a decision on monetary policy on Wednesday, with the Bank of Japan and the European Central Bank set to announce their decisions on Thursday. The Canadian central bank is expected to taper anticipating the Federal Reserve.
Also Read:
Volatility raises investors’ concerns on energy and commodities
