In New York, global equity markets diminished for the second day. The dollar dropped to its lowest in about a month on Wednesday as fragile US retail sales and a weakening in producer prices added to expectations that the Federal Reserve will not increase interest rates anytime soon.
Diverse earnings from major US banks, floppy inflation rates from China and other declines in products also assisted dampen the inclination for stocks and the dollar rates.
According to Reuters US retail sales increased by 0.1% in September as inexpensive gasoline weighed on service station receipts, while sales in August were unchanged from a previous 0.2% rise, says the Commerce Department.
In a different report, producer prices decreased 0.5% last month, which was the biggest fall since January, said the Labor Department. The index dropped 1.1% in the 12 months through September, its eighth straight 12-month drop.
These two reports are the latest implications that the US economy was losing motion during a slowing global economy growth. Employment growth in the US stopped sharply in the past two months.
MSCI’s all-country world index of the equity performance of 46 countries dropped by 0.38%, while the pan-regional FTSEurofirst 300 (.FTEU3) index in Europe decreased by 0.72%.
Stocks on Wall Street also dropped. The Dow Jones industrial average (.DJI) dropped 96.11 points (0.56%), to 16,985.78. The S&P 500 (.SPX) dropped 7.6 points (0.38%), to 1,996.09 and the NASDAQ Composite (.IXIC) lost 15.47 points (0.32%) to 4,781.14.
Banks such as JPMorgan (JPM.N) shares fell 2.7% to $59.87, a day after the bank reported its third-quarter results in which fell short of estimates.
The dollar decreased to a 3-1/2-week against currencies as implications of slowing growth that may cause Fed policymakers to vacate plans for a possible rate increase later this year until there is evidence of improving US demand and inflation.
The dollar index (.DXY) was down at 0.55% at 94.240. Against the yen, the dollar decreased by 0.53% to 199.10 (JPY=), while the euro reached a 3-1/2-week high against the greenback. It was last up by 0.58% at $1.1442 (EUR=).
Oil dropped below $50 a barrel, dropping for a third day on distress about a supply glut that persists and demand slowing as economic growth mediates in No.2 consumer China.
Brent (LCOc1) crude decreased by 24 cents at $49.00 a barrel. Prices have more than halved from June 2014. US crude (CLc1) decreased 39 cents to $46.27 a barrel.
US Treasury returns collapsed to its lowest in over a week on displays that the Fed will prolong a rate hike until 2016.
Future rates show that traders anticipate the first Fed rate increase since 2006, which would occur at the Federal Open Market Committee in March 2016.
10-year treasury prices were up 15/32 to yield 2.0016%, after the yield fell to 1.996 earlier.