Investing.com - Here are the top five things you need to know this morning, Thursday, October 29:
1. Fed leaves the door wide open for December rate hike
The Federal Reserve left interest rates unchanged following a two-day policy meeting on Wednesday, as widely expected, but surprised the market with a hawkish statement, which included a direct reference to its next policy meeting in December.
"In determining whether it will be appropriate to raise the target range at its next meeting, the committee will assess progress - both realized and expected - toward its objectives of maximum employment and 2% inflation," it said.
The central bank's statement did not repeat that global risks would have a likely impact on the U.S. economy, as it warned at its prior meeting in September.
The hawkish statement boosted the probability that the Fed will raise rates at its next meeting in December for the first time since 2006.
2. U.S. third quarter GDP due before the opening bell
The Commerce Department will release its preliminary estimate of U.S. economic growth for the third quarter at 8:30AM ET, at the same time as the weekly jobless claims report.
The report was expected to show that the economy expanded 1.6% in the three months ended September 30, slowing from growth of 3.9% in the second quarter, as a weaker global economy took its toll.
3. Global markets mostly lower after hawkish Fed
Asian equities were mostly lower in choppy trade Thursday, as a positive handover from Wall Street did little to help sentiment.
In Europe, equity markets declined as investors digested a raft of quarterly earnings reports and after signals that the Federal Reserve could raise interest rates as soon as December.
Meanwhile, U.S. stock futures pointed to losses at the open, as investors looked ahead to key U.S. third-quarter growth data due at 8:30AM ET for further clues on the strength of the economy.
4. U.S. earnings season continues
Ahead of the market open, Time Warner Cable (N:TWC), ConocoPhillips (N:COP), Mastercard (N:MA) and Altria Group (N:MO) will report earnings. After the market closes, Starbucks (O:SBUX), LinkedIn (N:LNKD), Expedia (O:EXPE), Electronic Arts (O:EA) and Western Union (N:WU) are on the earnings docket.
5. Gold, oil take a hit from stronger dollar
Gold and oil prices pushed lower on Thursday, as the U.S. dollar surged to a two-month high against a basket of major currencies after the Federal Reserve hinted at a possible rate hike in December.
Gold was last down $16.50, or 1.4%, to trade at $1,159.60 an ounce, while U.S. crude dropped 35 cents, or 0.76%, to $45.59 a barrel and Brent shed 52 cents, or 1.05%, to $48.53 a barrel.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.