US open: Stocks rise after economic data beats forecasts

US stocks advanced on Tuesday after better-than-expected on services activity and consumer confidence.

At 1533 BST the Dow Jones Industrial Average rose 0.39% to 18,163.21 points, the S&P 500 increased 0.29% to 2,151.65 points and the Nasdaq edged up 0.485 to 5,282.37 points.

At the same time oil prices were under pressure after Saudi Arabia played down expectations for a deal on oil production, calling the OPEC meeting “consultative” and dashing hopes that an agreement will be made.

West Texas Intermediate dropped 2.8% to $46.04 a barrel and Brent crude was down 3.0% to $44.59.

In economic data, Markit’s flash US services purchasing managers’ index printed at 51.9 in September from 51.0 in August, beating expectations for a reading of 51.1. A reading above 50 indicates expansion in the industry.

This marked the fastest monthly rise in activity since April, albeit still relatively modest.

Adjusted for seasonal influences, the flash US Composite PMI Output Index ticked up to 52.0 in September from 51.5 in August.

A gauge US consumer confidence rose in September to a new high. The Conference Board’s consumer confidence index increased to a seasonally adjusted 104.1 in September from an upwardly revised 101.8 in August, beating expectations of 99.0.

Meanwhile, investors continued to assess the first US presidential debate on Monday. Markets appeared to declare Clinton the winner of the debate as she went on the offensive against Trump, mentioning his controversial comments towards women and attacking the non-release of his tax returns.

In Europe, the main indices reversed opening losses to trade lower as worries about Deutsche Bank and the broader banking sector took hold again.

“US banks have been taking advantage of the difficulties in the European banking sector by taking market share but trouble at a multinational with a big presence in US capital markets like Deutsche Bank carries huge counterparty risk,” said Jasper Lawler, market analyst at CMC Markets.

Elsewhere on the corporate front, EndoChoice Holdings Inc. shared surged trade after Boston Scientific Corp said it would buy the medical technology company for about $210m.

Kite Pharma rallied after the drugmaker later on Monday released positive test results for its non-Hodgkin lymphoma drug.

Nike is due to report its earnings after the market closes.