Australian Market

Australia’s S&P/ASX 200 index closed 0.4% higher, reversing from Monday’s sharp falls in mining and energy shares. Materials was the standout sector for the day, rising 2.6%, followed by energy stocks, which gained 1.7%.

US Market 

U.S. stocks finished mixed after swinging between gains and losses as investors parsed a spate of economic data and comments from Federal Reserve officials. The Dow Jones Industrial Average, which entered a bear market on Monday, fell 0.4% Tuesday. The broad S&P 500 slipped 0.2%, closing at its lowest level of the year for the second day in a row. The technology-heavy Nasdaq Composite Index was up 0.3%.  

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, reaffirmed the central bank’s resolve to bring down persistent and elevated inflation in an interview with The Wall Street Journal. “There’s a lot of tightening in the pipeline,” Mr. Kashkari said, adding that the Fed is “committed to restoring price stability” but also recognizes “there is a risk of overdoing it.”  

Data showed that companies reduced durable goods orders for a second straight month. Home prices continued to notch big year-over-year gains, but the pace of that growth slowed. Home prices fell month over month. However, consumers are growing more optimistic about the U.S. economy. The Conference Board’s consumer-confidence index increased in September for the second month in a row, lifted in part by falling gas prices.

Commodities

Gold futures recovered some ground, finishing higher after back-to-back losses that left the yellow metal at its lowest level in two-and-a-half years. December gold climbed 0.2% to settle at $1,636.20 per ounce on Comex. “After sinking to its lowest level since April 2020 in the previous session, gold prices seem to be stabilising as the dollar rally pauses,” said Lukman Otunuga, manager, market analysis at FXTM, in a market update.

Oil Futures

Oil futures climbed, with prices finding support a day after settling at their lowest price since January, as Hurricane Ian led to a slowdown of crude production in the Gulf of Mexico. West Texas Intermediate crude for November delivery rose 2.3% to settle at $78.50 a barrel on the New York Mercantile Exchange.

November Brent crude, the global benchmark, was up 2.6% at $86.27 a barrel on ICE Futures Europe. Hurricane Ian strengthened as it proceeded on a path that could see it make landfall on Florida’s western coast. Chevron and BP on Monday said they had shut in production at some Gulf of Mexico platforms as they braced for the hurricane.

Forex

Major currencies were weaker against the US dollar in European and US trade. The Euro fell from highs near US$0.9666 to lows near US$0.9569 and was near US$0.9590 at the US close. The Aussie dollar dipped from highs near US65.11 cents to lows near US64.13 cents and was near US64.30 cents at the US close. And the Japanese yen fell from near 144.07 yen per US dollar to JPY144.89 and was near JPY144.80 at the US close.

European Markets

European sharemarkets fell on Tuesday, with the continent-wide FTSE Eurotop 100 index down by less than 0.1%. The UK FTSE 100 index slid 0.5% on investor fears about a new economic plan. The British pound recovered from Monday’s record lows on worries about the impact from the UK’s mini-budget.

Asian Markets

In Asian trading, Japan’s Nikkei Stock Average ended 0.5% higher, led by gains in game, food and consumer goods stocks, following recent market selloffs caused by concerns about policy tightening by major central banks. Chinese stocks ended higher, supported by liquor makers and travel-related sectors, as investors looked forward to stronger consumption during the upcoming National Day holiday at the start of October. The Shanghai Composite Index added 1.4%. The Shenzhen Composite Index climbed 2.1% and the ChiNext Price Index was 2.2% higher.