US indices closed higher on Tuesday as earnings season kicked off to a good start. Shares in the Health Care Equipment & Services (+2.75%) sector rallied the most with shares in the Semiconductors & Semiconductor Equipment (+2.46%) and Automobiles & Components (+2.3%) sectors followed close behind. There was no economic news to report. The S&P 500 (2,995.68) remains above its 20d moving average (2,958.85 – negative slope) and 50d moving average (2,939.38 – positive slope). Looking at crude oil, WTI dropped 1.27% following Monday’s decline amid oil demand concerns after the IMF cut its 2019 global growth forecast for the fifth time.
European markets are expected to start on a flat note.<\/p>\n\n\n\n
Foreign Exchange<\/strong><\/p>\n\n\n\n The US dollar was bullish against most of its major pairs on Tuesday with the exception of the CAD and GBP. On the economic data front, nothing was released. On Wednesday, economists expect the release of US MBA Mortgage Applications for the week ended October 11th. Retail Sales Advance MoM change is expected to come in at 0.3% for September, down from 0.4% in August. Finally, the U.S. Fed is expected to release the second last Beige Book for the year.
The Euro was bullish against most of its major pair with the exception of the CAD and GBP. In Europe, Germany investor confidence ZEW index fell to -25.3 in October, its worst reading in more than nine years, from -19.9 in September. It was expected to be -23.6. The sub-index for expectations decreased to -22.8 (-26.4 anticipated) from -22.5 a month earlier. French CPI growth was confirmed at 0.9% in September YoY vs 1% in August.
The Australian dollar was bearish against most of its major pairs with the exception of the JPY.<\/p>\n\n\n\n