World Stock Markets Mostly Weaker; FOMC Minutes In Focus

October 12, 2016

Frankfurt (Oct 12)  European and Asian stock markets were mostly lower Wednesday, partly on ideas the U.S. Federal Reserve will raise interest rates this year. U.S.

 stock indexes are pointed toward slightly lower openings when the New York day session begins.

The focus Wednesday is on the afternoon release of the minutes from the latest meeting of the Federal Open Market Committee (FOMC). The world marketplace for months has been fixated on the major central banks and their monetary policies.

In overnight news, China got some upbeat economic data when its domestic car sales soared to a three-year high, and were up 29% in September. Government tax breaks and dealer promotions were credited with boosting auto sales.

In the Euro zone, industrial production was reported up by 1.6% in August from July, and was up 1.8% year-on-year. The data was just above market expectations.

A feature in the marketplace this week is the stronger U.S. dollar index, which hit a seven-month high overnight. The appreciating greenback is a bearish outside market force that is working against the precious metals markets and other raw commodity markets.

Crude oil prices are near steady Wednesday. The crude oil bulls have seen success recently as prices are trending higher and are near a three-month high in the Nymex futures. Crude oil's daily price movements continue to have an influence over many other markets, and especially world stock markets.

U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the monthly Treasury budget statement, and the FOMC minutes.

Source: KitcoNews

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