-Euro-area inflation: Inflation in the Euro-area unexpectedly turned negative in September, falling to minus 0.1 percent, according to a flash estimate from Eurostat, the European statistics agency. The drop was driven by falling energy prices, with a breakdown of the headline number showing that component dropping 8.9 percent from a year earlier.
-Awful third quarter: Almost $11 trillion has been wiped off the value of global stocks in the three month period, and oil has posted its worst quarter since 2009. China’s Shanghai Composite Index was the worst performing benchmark global gauge, falling 29 percent, its biggest quarterly loss since 2008. Asian currencies also suffered multi-year record losses and even gold continues to suffer, posting its fifth successive quarterly loss, its worst performance since 1997.
-Fed speak: There is plenty more verbal guidance expected on Wednesday with a raft of Fed board members speaking. Later today we have Lael Brainard, James Bullard and Janet Yellen due to speak at the Community Banking Research and Policy Conference in St. Louis, Missouri and William Dudley speaking in New York. With market-based expectations for a rate rise in 2015 still below 50 percent, it will be worth watching to see if the recent hawkishness continues.
-Glencore bounce: Share in Glencore Plc staged a strong recovery yesterday in London following comments from the company that attempted to reassure investors that there was no cause for concern. The shares were trading 11.5 percent higher to 90 pence at 11:10 a.m. in London, bring the two-day recovery to 30 percent. Despite this recovery, the company’s shares are still trading far below the 125 pence it raised capital at on September 16, with some now expecting the company to announce further asset disposals. Glencore executives are scheduled to meet with bondholders today.
–Markets overview: European markets are striding higher in early trading, with most regional indexes managing gains of 2%. Asian markets ended in positive territory — Japan’s Nikkei led the way, recovering from a sharp fall on Tuesday. The Dow Jones industrial average inched up 0.3%, while the S&P 500 added 0.1% and the Nasdaq lost 0.6%.
–Stock market movers — Glencore, Volkswagen, Ralph Lauren: Glencore (GLNCY) continues to bounce back after the commodities group insisted the business remains «financially robust» and denied that it has solvency problems. The shares are up by about 10% Wednesday but still down by roughly 70% since the start of the year. Volkswagen (VLKAY) shares gained about 3% in early European trade. The stock has lost a third of its value since news broke about the automaker cheating on diesel emissions tests. Ralph Lauren (RL) shares rose nearly 4% in extended trading on news that a Gap (GPS) and Old Navy executive will replace Lauren as CEO. On the flip side, Gap’s stock price is declining by about 4% premarket.
-Economics: New data shows the eurozone is experiencing deflation again, with prices dipping by 0.1% in September. This figure will disappoint the European Central Bank, which introduced a stimulus program earlier this year to boost inflation and economic activity. Meanwhile, European unemployment data for August shows the region continues to struggle with 11% unemployment, a number that has stayed stable compared to the previous month. In the U.S., ADP will post its September employment figures at 8:15 a.m. ET. Then, at 9:45 a.m., Wall Street will watch for the Chicago PMI, which may give some clues about what the ISM Index will say tomorrow. Crude inventories data will be released at 10:30 a.m.