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Top 5 Things to Know This Morning

Published 2015-10-14, 06:28 a/m
© Reuters.  5 Things to Know This Morning
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Investing.com - Here are the top five things you need to know this morning, Wednesday, October 14:

1. Global markets lower as China inflation data triggers more worries

Appetite for riskier assets weakened after data showed Chinese producer prices fell 5.9% in September, the 43rd straight monthly decline and matching the worst reading since October 2009.

Consumer prices rose 1.6% last month, below expectations for 1.8% and down from 2.0% in August.

Global stock markets fell in wake of the disappointing inflation data, with commodity producers leading losses amid concerns over weakening demand from the world's second-biggest economy.

2. U.S. retail sales report due before the open on Wall Street

The Commerce Department is expected to report at 8:30AM ET that retail sales rose by 0.2% in September, after gaining 0.2% in August. Core sales are forecast to fall 0.1%, after rising 0.1% a month earlier.

Also at 8:30AM, the U.S. is to release data on producer price inflation, while data on business inventories is due at 10:00AM followed by the Federal Reserve’s Beige Book at 2:00PM.

3. Bank of America (N:BAC) earnings report in focus

Bank of America is expected to post quarterly results before the opening bell. Also reporting Wednesday are Wells Fargo (N:WFC), Blackrock (N:BLK) and Netflix (O:NFLX).

After the closing bell on Tuesday, JP Morgan Chase (N:JPM) reported weaker than expected third-quarter revenue figures, as weak trading markets and low interest rates dented profit in three of its four main businesses.

4. U.S. dollar falls to 1-month lows

The dollar fell to a one-month low against the other major currencies on Wednesday as weak Chinese inflation data fueled expectations that the Federal Reserve will delay hiking rates for longer.

The dollar index, which measures the greenback's value against a basket of six major currencies, was last trading at 94.57, a level not seen since September 18.

5. Gold extends rally to hit 3-month peak

Gold futures rose for the fourth straight session on Wednesday to hit a three-month high as a broadly weaker U.S. dollar coupled with ongoing expectations that the Federal Reserve will hold off on hiking interest rates until 2016 boosted the appeal of the precious metal.

A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

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