Market Update & Important Indicators:
U.S. stocks fell Tuesday as investors pulled back from some of this year's most popular trades. Many of Tuesday's moves were a reversal of positions that were built up as the Federal Reserve put off raising interest rates. But many investors expect the central bank will act by the end of the year. Shares of utilities companies continued their recent decline, falling 2.2% in the S&P 500. Income-seeking investors have favoured such dividend-paying stocks amid ultralow rates around the world, helping utilities become one of the best-performing sectors of the broader index this year. Investors also were beginning to look ahead to Friday's U.S. jobs report and the third-quarter earnings season. Recent reporting seasons have disappointed, though many analysts expect the picture to improve as the worst news from the energy sector fades.
European stocks leapt to their highest level in nearly two weeks, as Deutsche Bank shares resumed their recovery, while British blue-chips got a boost from the pound's drop. The Stoxx Europe 600 rose 0.8% to end at 346.10, achieving its highest close since Sept. 22, FactSet data showed. The index nabbed its sixth straight advance in a row, after closing slightly higher Monday. Deutsche's stock was dragged sharply lower last week on concerns the lender will face a $14 billion settlement with the U.S. Department of Justice over claims it sold toxic mortgage-backed securities. But shares have recovered somewhat in the wake of reports that the actual penalty won't be as severe.
Stock markets were broadly flashing green across Asia Tuesday, with Japanese equities leading the region as solid U.S. manufacturing data weakened the yen against the dollar. The Nikkei Stock Average closed up 0.8%, Korea's Kospi ended up 0.6% and Singapore's FTSE Straits Times Index was up 0.2%. Hong Kong's Hang Seng Index edged up 0.1% in a choppy session. Chinese markets are shut for the week. Released overnight, the U.S. September purchasing managers' index, a measure of factory activity, jumped to 51.5, shifting back into expansionary territory, after a surprise dip to 49.4 in August. The stronger manufacturing numbers sent the yen down 0.7% against the dollar, after traders regionally returned to risk assets, exiting the safe-haven yen. Elsewhere in Japan, financial stocks rebounded after a recent selloff largely linked to worries about the health of Deutsche Bank. The Topix banking subsector added 1.6%. Bank of Japan Governor Haruhiko Kuroda defended his negative interest-rate policy on Tuesday, saying it hadn't undermined banks' ability to lend surplus funds to those needing them.
After spending most of the session in the red, a late push helped Australian shares end with a modest gain. Energy stocks helped drive the market, boosted by an overnight increase in oil prices. The major banks also slowly shed early losses during the day, which had been holding the market down. The S&P/ASX 200 added 5.5 points, or 0.1%, to 5484–a second straight positive finish for the index, still the highest close since August 26.
On the London Metal Exchange, copper for delivery in three months was down 0.3% at $4,805/t. Aluminium was down 0.3% at $1,663/t, zinc was down 1.1% at $2,377/t, lead was down 1.2% at $2,065/t, tin was down 0.5% at $19,965/t, and nickel was down 2.6% at $10,031/t.
Recent Contacts & Presentations:
Breaker Resources NL (BRB), Bard1 Life Sciences Ltd (BD1), Alto Metals Ltd (AME), Birimian Limited (BGS), Antipa Minerals Ltd (AZY), Vault Intelligence Ltd (VLT), Noxopharm Ltd (NOX), Gage Roads Brewing Co. (GRB), West African Resources (WAF), Cedar Woods Properties Ltd (CWP), Sino Gas & Energy Holdings Ltd (SEH), Salt Lake Potash Ltd (SO4), Kalina Power Ltd (KPO), Austal Limited (ASB), Agrimin Ltd (AMN), Stavely Minerals Ltd (SVY), MGC Pharmaceuticals Ltd (MXC), Vital Metals Ltd (VML), Tox Free Solutions Ltd (TOX), Swick Mining Services Ltd (SWK), Davenport Resources Ltd (DAV), Orthocell Ltd (OCC), BC Iron Limited (BCI), ALT Resources Ltd (ARS)