Australian Stock Market Report – Morning October 15, 2015

A placard reading "You speculate with our lives" stands next to huge euro logo in front of the headquarters of the European Central Bank (ECB) before the bank's monthly news conference in Frankfurt August 7, 2014. The European Central Bank left interest rates unchanged on Thursday, holding off fresh policy action as it prepares to launch fresh funding for banks next month that it hopes will lift inflation from rock-bottom levels. REUTERS/Ralph Orlowski

* European shares recovered in late trade on Tuesday, after hitting an eight-month low earlier in the session. The better earnings results out of the US and rally in US equities prompted the turnaround. Earlier concerns about euro zone growth weighed on markets. The German ZEW monthly survey of economic sentiment fell for a 10th straight month to minus 3.6, the weakest result in almost two years. The FTSEurofirst 300 index rose by 0.1% while the UK FTSE gained 0.4% and the German Dax lifted by 0.2%. And Australia's major miners were stronger in London trade in line with shares in BHP Billiton up by 1.6% while Rio Tinto gained 2.4%.

* US sharemarkets gave back gains in late trade on Tuesday weighed down by the weakness in energy stocks. Earlier in the session strong earnings results supported buying. Citigroup rose by 3% after posting better-than-expected quarterly results and saying it would pull out of consumer banking in 11 markets. The S&P Financial index gained 0.5%. The S&P industrial sector led the gains, up 1.3%. The S&P energy sector lost 1.2%. The Dow Jones closed 6 points lower with the S&P 500 index up by 0.2% while the Nasdaq rose almost 14 points or 0.3%.

* US treasury prices rose on Tuesday (yields lower) driven by concerns about slowing global growth. US 2 year yields fell by 6 point to 0.372% while US 10 year yields were down 8 points to 2.197%.

* Major currencies fell against the greenback over the European and US session on Tuesday. The Euro fell from highs near US$1.2725 to lows near US$1.2640, ending US trade near US$1.2655. The Aussie dollar fell from highs near US87.95c to lows around US86.95c, ending the US session near US87.05c. And the Japanese yen held between 107.30 yen per US dollar to JPY106.30, ending US trade near JPY107.05.

* World oil prices fell sharply on Tuesday after the International Energy Agency cut global oil demand for 2014 and 2015. The IEA cut demand for OPEC oil by 200,000 barrels per day in both years. OPEC producer Iran and Kuwait said there was no need to rein in supplies, adding to the bearish tone for oil. In addition the US Energy Information Administration projected that shale oil output would increase by over 100,000 barrels per day in November. Brent crude fell by US$3.85 or 4.3% to US$85.04 a barrel while the US Nymex crude price fell by US$3.90 or 4.5% to US$81.84 a barrel - the biggest percentage fall in two years.

* Base metal prices were mixed on Tuesday with copper (up 1.1%) once again leading the gains. Tin led the declines, down by 2.5%. Gold rose with the Comex gold futures quote up by US$4.30 an ounce or 0.3% to US$1,234.30 per ounce. Iron ore was unchanged at US$83.10 a tonne.

Ahead: In Australia, consumer confidence, dwelling commencements for the June quarter and new vehicle sales figures are released. China releases inflation data. US retail sales business inventories and the Federal Reserve Beige book are all slated for release.

[Kick off your trading day with our newsletter]