US stocks rise on positive reports - 30.9.2015

US stocks closed higher on Tuesday as reports indicated consumer confidence rose unexpectedly and house prices climbed. The dollar weakened with the ICE US Dollar index slipping 0.1%. S&P 500 edged up 0.1%, snapping five-session losing streak that resulted in 4.3% loss for the index. Market participants will be watching closely Federal Reserve Chair Janet Yellen’s speech today for clues on central bank’s plans for interest rate hike. Economic data indicated consumer confidence index, as measured by Conference Board, instead of falling as anticipated rose to 103.0 from a revised 101.1 in August, the highest level since January. According to the Case-Shiller housing index US house prices in 20 US cities rose 5% in July from the same month a year earlier. Goldman Sachs investment bank revised downward S&P 500’s year-end target for 2015 to 2000 from 2100 because of slower than anticipated growth in US and China and lower oil prices. The bank also cut 2015 S&P 500 earnings-per-share forecast to $109 from $114, representing a 3% year-over-year decline in earnings. Today at 12:00 CET Mortgage applications will be published in US. At 13:00 CET Federal Open Market Committee member Dudley will speak in New York. At 13:15 CET September Employment Change will be released by Automatic Data Processing Inc. The tentative outlook is neutral. At 14:45 Chicago PMI for September will be released. The tentative outlook is negative. And at 20:00 CET Fed Chair Janet Yellen will speak on community banking in St. Louis.

European stocks extended losses on Tuesday as concerns about slowing global economy weighed on market sentiment. The Stoxx Europe 600 index fell 0.7% to 339.23, the lowest level since early January. Disappointing inflation reports spurred concerns disinflation and even deflation may be returning to euro-zone. Spanish inflation slumped to negative 1.2% in September against expected negative 0.5% reading. Consumer price index in Germany fell 0.2% in September, the steepest decline since January. European Central Bank president Mario Draghi said this month that the central bank is ready to expand its 1.1 trillion euro ($1.24 trillion) quantitative-easing program if a decline in oil prices and a slowdown in emerging markets were to worsen the inflation outlook. Such a scenario will put additional pressure on euro. Data released today indicated retail sales In Germany grew at a slower pace than expected, recording 2.5% rise year-over-year in August instead of expected 3.3% growth after 3.8% increase the previous month. Today at 8:55 CET September unemployment change and unemployment rate will be released in Germany. The tentative outlook is positive. At 9:30 CET final reading of Q2 GDP will be released in UK. The tentative outlook is neutral. And at 10:00 CET euro-zone preliminary consumer price index for September and unemployment rate will be published. The tentative outlook is negative.

Nikkei rose 2.7% today notwithstanding unexpected fall in factory output and weaker than expected retail sales in August. Tomorrow at 00:50 CET Tankan survey results will be released in Japan. The tentative outlook is negative.

Oil futures prices are falling today as investors expect the oil inventory in US will show a buildup after American Petroleum Institute report on Tuesday indicated US crude oil stockpiles rose by 4.6 million barrels to 457.8 million barrels last week. Today at 15:30 CET crude oil inventories will be released by Energy Information Administration.

Gold futures prices are falling today after closing lower on Tuesday as selloff in commodities continued.