Investing.com - Here are the top five things you need to know this morning, Tuesday, September 22:
1. Volkswagen shares plunge again as emissions scandal goes global
Shares in Volkswagen (XETRA:VOWG) plunged 20% on Tuesday, adding to Monday's 17% drop, as the scandal engulfing the German automaker spread to Asia after South Korea said it would investigate three of the maker's diesel models.
Volkswagen announced earlier that it will make a provision of €6.5 billion, or $7.3 billion, in the third quarter following the revelations last week that it had misled U.S. authorities over the emissions of its diesel cars.
Up to 11 million vehicles could be affected in the scandal, the German auto giant added.
2. Germany's DAX crashes 3%
The DAX crashed nearly 3% on Tuesday, as steep declines in Volkswagen weighed on the index. The German benchmark has been under heavy selling pressure in recent months as concerns over a global economic slowdown weighed.
3. Wall Street points to sharply lower open
U.S. stock futures pointed to sharp losses at the open on Tuesday, as ongoing concerns about sluggish global economic growth hurt investor sentiment.
During early morning hours in New York, the blue-chip Dow futures tumbled 232 points, or 1.41%, the S&P 500 futures slumped 30 points, or 1.52%, while the Nasdaq 100 futures dropped 77 points, or 1.78%.
On Monday, the Dow gained 125 points, after Federal Reserve officials signaled the central bank is likely to raise interest rates this year.
4. Federal Reserve rate hike outlook remains in focus
St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart both made the case for higher U.S. interest rates later this year on Monday.
Investors were looking ahead to a speech by Fed Chair Janet Yellen later in the week for additional clarity on the bank’s decision last week to leave interest rates on hold.
Most market experts believe the Fed will begin raising rates in December after keeping policy steady last week.
5. WTI oil futures lose more than $1 ahead of U.S. supply data
West Texas Intermediate oil futures fell sharply on Tuesday, as market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
U.S. crude was down $1.18, or 2.5%, at $45.78 a barrel, while Brent slumped 68 cents, or 1.39%, to $48.24 a barrel.