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(Kitco News) – Global stock markets were mixed Tuesday. European stocks were pressured in part from weaker-than-expected corporate earnings reports and by slumping crude oil prices. Asian stocks were supported by some upbeat economic data coming out of China, the world's second-largest economy.
China's official purchasing managers index (PMI) rose to 51.2 in October from 50.4 in September. The October number was higher than market expectations. U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
Gold prices are posting decent gains in early U.S. trading, on some chart-related buying interest, the weaker U.S. dollar index on this day, and on perceived bargain hunting.
In other overnight news, the U.K. Markit purchasing managers index came in at 54.3 in October, which was better than expectations and another sign that the British economy continues to hum right along after the Brexit vote in June.
The Federal Reserve's Open Market Committee (FOMC) meeting begins today and ends Wednesday afternoon with a statement. The majority of the marketplace believes the Fed will not raise interest rates at this meeting, but will wait until the December meeting to do so.
The key outside markets on Tuesday see Nymex crude oil prices weaker and hitting a five-week low. Recently weaker oil prices have weighed on world stock markets. Meantime, the U.S. dollar index is also weaker but still trading not far below its recent 8.5-month high.
Big economic events later this week include the Bank of England's monetary policy meeting Thursday and the U.S. employment report on Friday.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the U.S. manufacturing PMI, construction spending, the IBD/TIPP economic optimism index, domestic auto industry sales, and the ISM manufacturing report on business.
Spot gold prices on Kitco.com is seeng some renewed buying pressure Tuesday morning, hitting their highest level since the 5% selloff at the begining of the October. Overnight prices hit a low of 1,276.10 an ounce and are trading near session highs at $1,288.90
By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com
Follow Jim Wyckoff @jimwyckoff