US stocks erase early gains, drifts in negative territory

Major US equity indices trimmed early modest gains and turned mildly lower on Tuesday, failing to benefit from upbeat Chinese manufacturing data that receded fears of China-led global economic slowdown. Investors also ignored a slight improvement in US ISM manufacturing PMI print, which rose to 51.9 in October from September's 51.5.

At the time of reporting, all the major indices – the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite, were trading nearly unchanged from Monday's closing level. Today's range-bound action came after Monday's weak closing amid political uncertainty ahead of US presidential election and continuous slide in crude oil prices. 

Focus now shifts to the much awaited two-day FOMC meeting, kick-starting on Tuesday and is slated to announce its decision on Wednesday. Although the US Federal Reserve is widely expected to leave its monetary policy unchanged, investors would be keen to evaluate the possibilities of an action at December meeting and hence, might provide fresh impetus for the markets.

In currency markets, the overall US Dollar Index lost some ground after the latest ABC News/Washington Post tracking poll result showed previous lead for Democrat candidate Hillary Clinton evaporated after FBI's probe over Clinton's email. According to the latest poll results, 46% voters supported Trump as compared to 45% supporters for Clinton. 

In other markets, weaker greenback boosted demand for dollar-denominated commodities and Gold touched the highest level since Oct. 4.

 

 

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