Consumers Confident, OPEC Not

The latest momentum higher in equities accompanied data showing US consumer confidence for September rose to 104.1, the highest reading since August of 2007. Additionally, the Markit Flash Services PMI for September rose to 51.9 from 51.0 last month.  However, the pace of housing price increases decelerated modestly to a 5.00% annualized pace according to the Case-Shiller home price index.  The rise in stocks was also helped by most bulls refusing to book their profits from Monday as the markets continued to rejoice at the prospect of a Clinton presidency. Gains were capped, especially in the financial sector, as investors wondered if the ongoing troubles at Deutsche Bank would turn into a Lehman-like scenario.The focus will be on durable goods data along with Chairwoman Janet Yellen who is scheduled to appear before the House Financial Services Committee later.

As OPEC and Russia meet on Wednesday to discuss the prospect of a freeze on production, the outlook is not too bright. Most analysts reckon that the long-standing rivalry between Middle East heavyweights Saudi Arabia and Iran will likely prevent an accord from being reached.  Following conflicting signals from various major producers in the weeks leading up to the Algeria gathering, Saudi energy minister Khalid al-Falih finally dashed any hopes of a deal on Tuesday when he said differences between OPEC members were still wide enough to negotiate an immediate agreement.  Crude oil prices were flat in early trade Asian after falling in the previous session. West Texas Intermediate futures were trading around $44.92 a barrel, while Brent hovered close to $46.33 a barrel on Wednesday.