The USD continues its good form this Wednesday as traders await fresh data from the world’s biggest economy. More earnings are set to be released later today with big companies such as American Express and eBay publish their third-quarter reports. Global stocks continue to trade near record highs and Chinese President Xi Jinping lays out the future of his nation. Here are the most important things to know for today.
1. Dollar moves higher
The dollar remained supported against a basket of the other major currencies on Wednesday as investors looked ahead to appearances from Federal Reserve policymakers.
New York Fed president William Dudley and Dallas Fed chief Robert Kaplan will participate in a conversation on economic growth at 12:00 GMT with participants watching for any hints on the future of monetary policy.
Traders were also keeping watch over developments regarding U.S. President Donald Trump’s pick for Fed chair. The dollar has been buoyed in recent sessions by speculation that Trump could pick a more hawkish candidate than Yellen, whose term is due to end in February.
Focus will also be on the release of the Fed’s Beige Book at 18:00 GMT which gives an indication of the economic situation in each of the 12 Federal Reserve districts, along with housing starts and building permits out at 12:30 GMT.
2. Earnings continue to flow
After earnings from Dow components helped support stocks a day earlier, the focus on quarterly reports will continue to garner the market’s attention on Wednesday.
American Express will be the big player from the blue-chip index when the credit card company reports earnings after the market close along with closely watched figures from the likes of eBay, United Continental or former Dow component Alcoa.
Before Wednesday’s opening bell, US Bancorp and Abbot Labs are among companies releasing earnings.
With the third quarter earnings season still in the early stages, 82% of the 45 S&P firms reporting so far have beat consensus on profit while 73% have topped estimates on sales, according to The Earnings Scout.
3. Global stocks rally on
U.S. futures pointed to a continuation of gains with the Dow set to take another shot at the 23,000 point level breached a day earlier when the S&P 500 closed at record highs, while traders brace for another round of earnings.
Elsewhere, European stocks moved higher on Wednesday as investors digested a string of earnings, though Spanish equities were in the red as the country braced for a Thursday deadline for the Catalonian president Carles Puigedemont to clarify whether his region has officially declared independence.
Asian equities consolidated gains on Wednesday as Chinese President Xi Jinping laid out his road map to support the world’s second largest economy. Japan’s Nikkei and China’s Shanghai Composite both ended about 0.2% higher.
4. China set for “new ear”
Chinese President Xi Jinping laid out a roadmap for the world’s second largest economy in what he termed would be a “new era” with China more open to the rest of the world.
"Through a long period of hard work, socialism with Chinese characteristics has entered a new era, this is a new historical direction in our country's development," Xi said.
On the economic front, the Chinese leader promised to relax market access for foreign investment, expand access to its services sector and deepen market-oriented reform of its exchange rate and financial system, while at the same time strengthening state firms.
