The minutes of the September FOMC meeting highlighted that Federal Reserve policymakers have the left the door open to a further round of stimulus in the near term. Interestingly the Fed viewed recent incoming data on the economy as better-than-expected.

US ICSC chain store sales rose 0.8ct in the past week. Compared with the same period a year ago, sales were up 2.6pct. The ICSC now expects October retail sales to rise by 3pct. The US Conference Board job index fell from 97.3 to 97.0 in September. However the index is still up more than 9pct from a year ago.

European shares eased modestly as investors awaited the FOMC minutes for clues on how the Fed will support the economy. Energy stocks were amongst the worst performers after the oil price slipped. The FTSEurofirst index fell by 0.2pct and the UK FTSE eased 0.2pct while the German Dax lost 0.1pct.

US sharemarkets closed in positive territory after a choppy trading session on Tuesday. The release of the FOMC minutes supported equity markets with investors expecting the Fed to add further stimulus to the economy in the near term. The Dow Jones rose by 10pts or 0.1pct with the S&P 500 up 0.4pct and the Nasdaq lifted by 16pts or 0.7pct.

The US treasury prices fell (yields higher) on Tuesday. Lacklustre demand for the $32 billion in 3yr notes added to the mild weakness in prices. US 2yr yields rose by 1pt to 0.37pct while US 10yr yields rose 2pt to 2.41pct.

The Euro and commodities currencies rallied against the US dollar, following the release of the latest Federal Reserve minutes. The Euro rose from lows near US$1.3775 to US$1.3930, ending US trade near US$1.3915. The Aussie dollar rose from lows around US97.65c to highs near US98.70c, closing US trade near US98.65c. And the Japanese yen traded between 82.10 yen per US dollar and JPY81.65, ending near JPY81.80.

US crude oil prices ended lower for a second straight session on Tuesday, as OPEC signalled that it will keep output targets steady at its next meeting. The IEA confirmed that China is now the biggest energy consumer ahead of the US. The Nymex crude oil contract fell by US54c or 0.7pct to US$81.67. London Brent crude fell by US32c to US$83.40 a barrel.

Base metal prices were mostly higher London Metal Exchange on Tuesday ahead of what is expected to be strong trade data out of China. Lead rose 2.7pct and zinc lifted 1.7pct . But the gold price eased modestly falling by US$7.70 an ounce to US$1,346.70.
Ahead: In Australia, consumer sentiment, and lending finance is released. In the US import price index is released.