(Kitco News) - European equity markets were mostly firmer Tuesday, amid an upbeat economic report from Germany and better corporate earnings reports in Europe. Overnight Asian stock markets were mixed, with some selling pressure tied to a weaker South Korean gross domestic product report.
A weaker yen against the U.S. dollar helped to support Japan's Nikkei stock index. U.S. stock indexes are pointed toward higher openings when the New York day session begins.
Trader and investor risk appetite has been on the upswing the past few trading sessions.
In overnight news, the closely watched German Ifo business sentiment index rose to a 2.5-year high in October. The reading was 110.5 versus 109.5 in September.
Gold prices were firmer in early U.S. trading on more short covering and bargain hunting. Reports Tuesday said there has been a recent large outflow of funds from gold-backed exchange traded funds (ETFs).
The key "outside markets" on Tuesday see the U.S. dollar index near steady on mild profit taking after hitting a seven-month high Monday. The recent strong greenback is somewhat limiting buying interest in the raw commodity markets. Meantime, Nymex crude oil prices are slightly higher on a corrective bounce from recent selling pressure. Oil futures are still trading above the key $50.00-a-barrel level.
The big data point for this week will be Friday's U.S. gross domestic product report for the third quarter, which is expected to see a rise of 2.5%, year-on-year. Many markets could become more volatile in the immediate aftermath of that report.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the S&P/Case-Shiller home price index, the Richmond Fed business survey, the consumer confidence index, and the IBD/TIPP economic optimism index.
By Jim Wyckoff, contributing to Kitco News; [email protected]
Follow Jim Wyckoff @jimwyckoff