U.S. Indexes mainly closed in the green amid risk-on trade, although the Russell 2000 lagged and saw losses. Given the sentiment, all sectors, aside from Health, saw gains, with Utilities and Consumer Discretionary outperforming as the former was buoyed by Constellation Energy surging as it entered into a power deal with Google. Given the aforementioned risk tone, Treasuries gained, largely tracking global benchmarks, as some of the European political woes eased on Tuesday. Precious metals firmed, while the crude complex saw two-way trade. For the energy space, there was little new, although the Saudi Energy Minister said 5.8mln BPD (vs capacity of 7mln BPD) is currently flowing through the East-West pipeline, and operations resumed around five days after the hit, albeit it is yet to be confirmed by an independent source or verification. In the FX space, the Dollar was lower and weighed on by wider moves as high-beta FX outperformed. The US data slate was pretty sparse as the US reported a wider-than-expected trade deficit and Fed speak came in the form of Daly and Schmid, with the latter striking a hawkish tone, albeit garnering little market reaction. The US Trade Deficit widened sharply to USD 105.6 billion in August (exp. USD 102.0 billion), as imports rose 4.3% to USD 420.8 billion while exports increased a more modest 1.4% to USD 315.2 billion. The widening reflected the goods deficit increasing to USD 136.6 billion, while the services surplus was little changed at USD 31.0 billion. Under the hood, goods imports jumped USD 17.2 billion, led by Industrial Supplies & Materials (+USD 9.1 billion), including a USD 3.3 billion increase in crude oil, while Capital Goods imports rose USD 6.2 billion, including a USD 2.4 billion increase in semiconductors and USD 1.3 billion in other industrial machinery. Goods exports rose USD 4.4 billion, primarily reflecting a USD 6.3 billion increase in Industrial Supplies & Materials, including higher crude oil exports (+USD 2.0 billion), while Capital Goods exports increased USD 1.3 billion and Consumer Goods fell USD 2.2 billion. Oxford Economics notes that the deficit was its widest since Q1 2025, partly reflecting an AI-driven surge in capital goods imports, and expects net trade to pose a sizable drag on Q3 GDP. However, Oxford expects roughly half of that drag to be offset by a 1.4ppt contribution from booming equipment investment, with healthy AI demand and inventory restocking expected to keep imports firm in the near term. Oxford adds that oil exports are unlikely to provide as much support as they did in Q2. Elsewhere, Oil closed higher by 0.25% and Gold by 0.75%.
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For anyone following my Platinum Service it made 400 points yesterday and is now ahead by 1393 points for October after ending September with a nice gain of 7767 points, after ending the month of August with a gain of 2645 points after closing July with a gain of 8031 points, after ending June with a new record of 10527 points after ending May with a loss of 1104 points, having ended April with a gain of 1730 points, after ending March with a massive gain of 9002 points, having closed February with a strong gain of 5482 points after ending January with a gain of 4757 points, having closed December with a gain of 2599 points, after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a previous record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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