US factory activity picked up in October

Separately across the Pacific, private and official surveys showed Tuesday that China's factory activity rose in October to the highest level in two years, a sign the world's second-biggest economy may be stabilizing after years of decelerating growth.

The news "adds fuel to the narrative that global demand is finally heating up after a dismal showing in the first half of the year," Fotios Raptis, senior economist at TD Economics, wrote in a research report.

[...] the Commerce Department reported last week that orders for big-ticket manufactured goods dipped in September and that a category that tracks business investment registered the biggest drop in seven months.

Companies have slashed investment in equipment for four straight quarters, partially because the energy industry has cut back in the face of low oil prices.

The report showed that production grew at its fastest pace in more than five years as strong domestic demand more than offset a slight drop in new export orders.