· The dollar rose to a 16-month high against a basket of major currencies on Tuesday, amid growing signs the United States economy is outperforming its peers.
The dollar index, which measures the greenback against six major currencies, was 0.4 percent higher at 97.004. Earlier in the session, the index hit a high of 97.02, its strongest since 30 June, 2017.
· U.S. consumer confidence rose to an 18-year high in October, driven largely by a robust labor market, bolstering expectations that strong economic growth would continue through early 2019.
But a weakening housing market and tightening financial market conditions are casting a shadow on the economic expansion that is in its ninth year, the second longest on record. Home price gains slowed further in August, other data showed, another sign that higher mortgage rates were weighing on housing demand.
The Conference Board said its consumer confidence index reading rose to 137.9 this month, the highest since September 2000, from a downwardly revised 135.3 in September. Economists polled by Reuters had forecast the consumer index slipping to 136.0 from the previously reported 138.4 in September.
· With congressional elections a week away, President Donald Trump on Tuesday said he will seek to scrap the right of citizenship for U.S.-born children of non-citizens and illegal immigrants as he tries again to dramatically reshape immigration policies.
· A no-deal Brexit would be likely to tip Britain into a recession as long as the downturn that followed the global financial crisis, and investors should no longer ignore this danger, credit ratings agency Standard & Poor’s said on Tuesday.
· Britain is to hire nearly 1,000 more diplomatic staff as it looks to expand its links with countries around the world after Brexit, Foreign Secretary Jeremy Hunt will announce on Wednesday.
· The Bank of Canada on Tuesday reiterated that more interest rate hikes would be needed to achieve its inflation target and said now was the ideal time to remove monetary stimulus given how well the economy was doing.
· The Bank of Japan is set to keep monetary settings unchanged on Wednesday and signal its readiness to maintain its massive stimulus program for the time being, as global trade frictions and financial market jitters cloud the economic outlook.
· China reported slower manufacturing growth in October as the country's trade war dispute with the U.S. continues.
Official manufacturing Purchasing Managers' Index (PMI) was 50.2 — lower than the 50.6 analysts analysts expected in a Reuters poll. The official manufacturing PMI was 50.8 in September.
A reading above 50 indicates expansion, while a reading below that signals contraction.
October is the first full month after the latest U.S. tariffs went into effect. Washington and Beijing slapped additional tariffs on each other's goods on Sept. 24.
· Oil prices dropped more than 1 percent on Tuesday on signs of rising supply and concern that global economic growth and demand for fuel will fall victim to the U.S.-China trade war.
Brent crude LCOc1 futures fell $1.43, or 1.9 percent, to settle at $75.91 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 86 cents to settle at $66.18 a barrel, a 1.3 percent drop.
Earlier in the session, Brent reached a session low of $75.09 a barrel, the lowest since Aug. 24. WTI slumped to $65.33 a barrel, the weakest since Aug. 17.
Investors will look to official government data on U.S. inventories due to be released Wednesday.
Reference: Reuters, CNBC
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