US markets returned to trading overnight and closed higher despite an awful Non Manufacturing ISM read, which came in at the lowest level since 2010.
The Nasdaq composite closed 0.5 percent higher at a new all-time high of 5,275
"The market is discounting the easier comparisons that are coming for the third quarter, and you can put that at the feet of oil," said Maris Ogg, president at Tower Bridge Advisors. "$45 is not much, but it's better than $25."
The S&P 500 gained about 0.3 percent, with energy rising more than 1.5 percent.
"I'm impressed by the stock market's resilience. I would've expected a more negative reaction," said Kate Warne, investment strategist at Edward Jones. "I think the reason the market is being resilient is because [ISM] lowers the expectations that the Fed will make any sudden moves." 1
Today's ISM data also put very strong downside price pressure on the U.S. dollar index, which was friendly to the precious metals markets bulls.
Gold and silver futures prices ended the U.S. day session sharply higher and hit three-week highs Tuesday. Overnight gains in both metals were solidly extended after the morning release of a very downbeat U.S. ISM non-manufacturing report for August. Today’s big gains followed Friday’s price advances that produced technically bullish weekly high closes in gold and silver. 2
Gold: $1350
HUI: + 5.3%
AUD Gold: $1756
