Investing.com - Here are the top five things you need to know this morning, Monday, October 19:
1. China economy logs weakest growth since 2009
Official data released earlier showed that China’s economy grew 6.9% in the third quarter, slightly better than forecasts of a 6.8% rise but down from growth of 7.0% in the previous quarter. The figure is the country's slowest growth rate since the 2009 global financial crisis.
A separate report showed that industrial production rose by an annualized rate of 5.7% in September, below expectations for a 6.0% increase and following a gain of 6.1% in the preceding month.
Data on fixed asset investment also missed forecasts, reinforcing views that Beijing will roll out further support measures soon for the world's second largest economy.
2. Global markets mixed in wake of China GDP report
Appetite for riskier assets remained subdued after Chinese government data showed third-quarter economic growth slowed to 6.9%, the first time since the global financial crisis that the country’s gross domestic product has grown less than 7%
Stock markets in Asia and Europe were mixed, while U.S. stock futures pointed to a flat open.
3. Morgan Stanley and IBM report quarterly earnings
Morgan Stanley (N:MS) is expected to post quarterly results before the opening bell, while International Business Machines (N:IBM) is due after the close. Also reporting on Monday are Hasbro Inc (O:HAS), Halliburton Company (N:HAL) and Six Flags (N:SIX).
4. U.S. dollar edges higher amid Fed rate hike uncertainty
The dollar inched higher against the other major currencies on Monday, amid ongoing uncertainty over the timing of a Federal Reserve rate hike. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% at 94.96.
Investors have been trying to gauge when the Fed will raise interest rates for the first time in nearly a decade after recent economic reports offered a mixed picture of the U.S. economic growth.
The dollar tumbled to seven-week lows last Thursday amid speculation the U.S. central bank will not raise rates until sometime next year, with weak economic reports on retail sales and manufacturing activity feeding that view.
However, upbeat data on inflation and consumer sentiment prompted investors to pare bets that Fed policymakers will wait until next year to hike rates.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months. The U.S. central bank has two more scheduled policy meetings before the end of the year, in late-October and mid-December.
5. Brent oil futures fall below $50 on China growth concerns
Crude oil futures fell on Monday, after data showed China's economy expanded at its slowest pace since 2009 in the third quarter.
Brent lost 77 cents, or 1.53%, to $49.69 a barrel, while U.S. crude was down 53 cents, or 1.11%, at $47.19.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.