The Breakfast Briefing: Stocks Rise As Investors Take Global Economy’s Pulse

Ted

FYI: U.S. stock index futures were trading higher on Tuesday morning.

Around 5:15 a.m. ET, Dow futures indicated a positive open of more than 90 points. Futures on the S&P 500 and Nasdaq were also higher.

Wall Street ended higher on Monday on the back of renewed optimism in U.S.-China trade talks. A spokeswoman for the U.S. Treasury said the White House “is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time.” This relieved some earlier fears raised by reports last week that the U.S. has been looking at restricting U.S. investments in China.

•European, Japanese stocks higher

•Dollar strengthens against euro

•Crude prices higher

The U.S. dollar strengthened against major currencies and global stocks edged higher Tuesday, as investors awaited key data on the health of the world economy.

The Stoxx Europe 600 opened up 0.4%, with Germany’s DAX 0.5% higher and the U.K.’s FTSE 100 up 0.2%. U.S. stock futures were 0.4% higher.

The ICE U.S. Dollar index, a measure of the dollar’s level against a basket of currencies, rose 0.1% to 99.58, its strongest level since 2017. The euro fell against the dollar to near its weakest point since May 2017, with one euro buying $1.089.

In Japan, the Nikkei climbed 0.6%, despite data showing sentiment among Japan’s large manufacturers falling to its weakest level in over six years. Strong domestic demand and growing investment activity likely limited the decline, Société Générale Chief Japan Economist Takuji Aida said. Investors were trying to gauge how Japan’s increase in local sales tax, which came into effect Tuesday, would affect consumer spending.

Hong Kong and mainland Chinese stock markets were closed for a holiday.

In commodities, oil futures for Brent crude rose 0.5%.

The yield on U.S. 10-year Treasurys rose to 1.706%, from 1.667% Monday. Bond yields and prices move in opposite directions.

On Monday, stocks in the U.S. finished the third quarter higher, with the S&P 500 turning in its best performance in the first three quarters of a year since 1997.
Regards,
Ted

WSJ:
https://www.wsj.com/articles/stocks-rise-as-investors-take-global-economys-pulse-11569917995

Bloomberg:
https://www.bloomberg.com/news/articles/2019-09-30/asia-stocks-set-for-modest-gains-dollar-rises-markets-wrap

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-apple-stock-buy-stock-market-rally-microsoft-stock/

CNBC::
https://www.cnbc.com/2019/10/01/dow-futures-us-china-trade-wto-wall-street.html

U.K.
https://uk.reuters.com/article/uk-britain-stocks/uk-shares-climb-higher-ferguson-advances-idUKKBN1WG32M

Europe:
https://www.reuters.com/article/europe-stocks/update-1-poor-pmi-data-turns-european-shares-lower-idUSL3N26M214

Asia:
https://www.marketwatch.com/story/asian-markets-rise-ahead-of-australia-interest-rate-announcement-2019-09-30/print

Bonds:
https://www.cnbc.com/2019/10/01/treasury-yields-rise-amid-cautious-trade-optimism.html

Currencies:
https://www.cnbc.com/2019/09/30/forex-markets-us-china-trade-war-in-focus.html

Oil:
https://www.cnbc.com/2019/10/01/oil-markets-us-oil-output-opec-in-focus.html

Gold:
https://www.cnbc.com/2019/10/01/gold-markets-us-dollar-in-focus.html

Cuirrent Futures:
https://finviz.com/futures.ashx