Investing.com - Here are the top five things you need to know this morning, Monday, October 12:
1. Wall Street points to flat open as it gears up for earnings season
U.S. stock futures pointed to a flat open on Monday, with investors remaining cautious as third-quarter earnings season gets underway this week.
During early morning hours in New York, the blue-chip Dow futures inched up 5 points, or 0.03%, the S&P 500 futures shed 1 point, or 0.03%, while the Nasdaq 100 futures declined 2 points, or 0.03%.
Trading volumes were expected to remain thin, with most banks and federal institutions closed for the Columbus Day holiday. That also means no major data releases are on tap for Monday.
On Friday, Wall Street eked out small gains following the release of stock market-friendly minutes of the Federal Reserve's September policy meeting.
2. Chinese shares lead Asia rally
China's Shanghai Composite Index surged 3.3% on Monday, amid speculation Beijing will roll out more stimulus measures to counter a sharper slowdown in the world's second-largest economy.
Shares also got a boost from a central bank report that stated the country's stock market correction was "almost over."
The upbeat sentiment carried over to other markets in the region, with Japan's Nikkei closing up 1.7%, while Hong Kong's Hang Seng jumped 1.2%.
3. European shares trade mixed
European stock markets swung between small gains and losses in subdued trade on Monday, despite a positive lead from Asia overnight.
London's FTSE 100 was off by 0.45%, France’s CAC 40 was down 0.5%, while Germany's DAX inched up 0.2%
4. Dollar struggles at 3-week lows
The U.S. dollar fell to a three-week low versus a basket of major currencies on Monday, as declining expectations for a U.S. rate hike before the end of the year continued to weigh on demand for the greenback.
The dollar index, which measures the greenback's value against a basket of six major currencies, was last trading at 94.78, a level not seen since September 18.
5. Gold rallies to seven-week high
Gold futures rose to the highest level since August 24 on Monday, amid growing expectations that the Federal Reserve will hold off on hiking interest rates until 2016.
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.