European Economics Preview: Eurozone Flash Composite PMI Data Due

Gold Futures Snap 6-day Losing Streak, Settle Moderately Higher

Gold futures snapped a six-day losing streak and ended moderately higher on Tuesday, as the dollar retreated on weak U.S. manufacturing and services sector data.

The dollar index dropped to 108.08 post release of the latest batch of economic data. Despite recovering subsequently to 108.55, the index remains firmly down with a loss of about 0.45%.

Gold futures for December ended higher by $12.80 or about 0.7% at 1,761.20 an ounce, a day after settling at a near 4-week low.

Silver futures for September closed higher by $0.148 at $19.026 an ounce, while Copper futures for September settled at $3.6955 per pound, gaining $0.0440.

In economic news, data from Markit Economics showed the S&P Global US Composite PMI came in with a score of 45 for August, down from a reading of 47.7 in July.

The Manufacturing PMI fell to 51.3 in August from 52.2 a month earlier, while the Services PMI dropped to 44.1 in the month from 47.3 in July.

Data from the Commerce Department showed new home sales in the U.S. dropped 12.6% month-over-month to a seasonally adjusted 511,000 in July, the lowest reading since January 2016.

According to a report from the Federal Reserve Bank of Richmond, the Richmond Fed composite manufacturing index fell to -8 in August from 0 in the previous month.

Meanwhile, Redbook Research Inc. said that the Redbook index increased by 13.5% in the week ending August 20, 2022 over the same week in the previous year.

Crude Oil Futures Settle Sharply Higher On Supply Concerns

Crude oil prices rose sharply on Tuesday with traders weighing the prospects of the Organization of the Petroleum Exporting Countries and allies cutting output to support prices in the event of Iranian crude entering the market.

West Texas Intermediate Crude oil futures for September ended higher by $3.38 or about 3.7% at $93.74 a barrel.

Brent crude futures gained nearly 4% to $100.22 a barrel.

Saudi Arabia has warned that OPEC could cut output to correct the recent oil price fall. Saudi’s oil minister Prince Abdulaziz bin Salman said late Monday that the Organization of the Petroleum Exporting Countries stands ready to reduce production as future prices don’t reflect the underlying fundamentals of supply and demand.

“The paper and physical markets have become increasingly more disconnected,” he said in response to written questions from Bloomberg News.

“Witnessing this recent harmful volatility disturb the basic functions of the market and undermine the stability of oil markets will only strengthen our resolve,” he said.

Markets also looked ahead to weekly inventory data from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API data is due later in the day, while EIA’s inventory report is due Wednesday morning.

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Juvenile dies of injuries suffered in single-vehicle rollover crash in Denver

A juvenile has died from injuries suffered in a single-vehicle rollover crash in Denver, police said.

The rollover crash happened near Smith Road where it turns into Albion Street in Park Hill, Denver police reported about 10:45 p.m. Monday.

At about noon on Tuesday police announced that a juvenile female who was in the vehicle has died.

Four other people were in the vehicle, police said. Everyone, including the juvenile, was taken to a local hospital. An investigation is ongoing.

GM Recalls 484K SUVs To Fix Issues With Third-row Seat Belts

General Motors (GM) has recalled over 484,000 SUVs in the U.S. to fix a problem that can cause the third-row seat belts to malfunction.

General Motors is recalling certain 2021-2022 Cadillac Escalade, Escalade ESV, Chevrolet Suburban, Tahoe, GMC Yukon, and Yukon XL vehicles equipped with third-row seats.

According to NHTSA, the rivet that retains the buckle to the mounting bracket in the left or right side third-row seat belt buckle assembly may have been improperly formed. A seat belt with a deformed rivet may not properly restrain an occupant, increasing the risk injury during a crash.

The company says it’s not aware of any crashes or injuries caused by the problem.

The company has said that the dealers will inspect the rivet head formation on both the left and right side third-row seat belt buckle assemblies and replace seat belt buckle assemblies, as necessary, free of charge.

Owner notification letters are expected to be mailed September 26, 2022.

European Economics Preview: Eurozone Flash Composite PMI Data Due

Flash composite Purchasing Managers’ survey results from the euro area and the UK are due on Tuesday.

At 3.00 am ET, the Turkish Statistical Institute is scheduled to publish consumer sentiment survey results for August.

At 3.15 am ET, S&P Global releases France flash composite PMI data. Economists expect the index to drop to 50.8 in August from 51.7 in July.

At 3.30 am ET, Germany’s flash composite Purchasing Managers’ data is due. The index is forecast to fall to 47.4 in August from 48.1 in July.

At 4.00 am ET, S&P Global is slated to publish euro area flash PMI survey results. Economists expect the composite indicator to ease to 49.0 in August from 49.9 a month ago.

Half an hour later, UK S&P/CIPS flash PMI data is due. The composite index is seen at 51.3 in August versus 52.1 in July.

At 6.00 am ET, the Confederation of British Industry is set to publish Industrial Trends survey results. The order book balance is forecast to decline to 3 percent from 8 percent in July.

At 10.00 am ET, Eurozone flash consumer sentiment survey results are due from the European Commission. The index is seen at -28.0 in August, down from -27.0 in July.