The Fed puts December back in play, Deutsche Bank announces losses and staff cuts, and there’s lots of news out of China. Here are some of the things people in markets are talking about this morning.
December still in play
Federal Reserve officials pivoted toward a December rate hike in a statement released in Washington yesterday and which referred to the bank’s “next meeting” as it discussed the timing of lift-off. Market-based expectations for a rate rise in 2015 now stand at 46 percent this morning, up from 34 percent before the release of yesterday’s statement. Emerging market stocks and currencies have sold off as the dollar strengthened in the aftermath of the statement.
Europe’s big oil reports
Royal Dutch Shell Plc reported its biggest net loss in more than a decade, Total SA posted a third-quarter profit that beat analysts’ forecasts and Eni SpA, Italy’s largest oil producer, reported a net loss as the slump in crude prices continues to take its toll on producers, with higher refiner margins the only silver lining. Here is what to watch for from the oil companies as low prices continue.
Euro-area economic confidence
Confidence in the euro-area economy unexpectedly increased for a fourth consecutive month in October, climbing to 105.9, ahead of economist expectations of a drop to 105.1 in a Bloomberg survey. Seperately, Spanish retail sales grew at the fastest pace in nine months, adding to a run of 14 monthly increases, while inflation in the country remained negative. In Germany unemployment declined more than expected.