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5 Things to Watch This Morning

Published 24/09/2015, 08:39 pm
© Reuters.  Top 5 Things to Know This Morning
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Investing.com - Here are the top five things you need to know this morning, Thursday, September 24:

1. Fed Chair Janet Yellen speaks

Federal Reserve Chair Janet Yellen is to speak on inflation dynamics and monetary policy at an event at the University of Massachusetts at 5:00PM ET on Thursday.

Market players will scrutinize her comments after the U.S. central bank left interest rates unchanged last week due to concerns over soft inflation and the effects of recent market volatility on the U.S. economy.

Most market experts believe the Fed will begin raising rates in December after keeping policy steady last week.

2. Key U.S. data

Besides Yellen's speech, investors will focus on a few key pieces of U.S. data due later in the day for further indications on the strength of the economy and the likelihood of a near-term interest rate hike.

The U.S. is to release data on durable goods orders and initial jobless claims at 8:30AM ET, followed by a report on new home sales at 10:00AM.

3. Wall Street points to lower open

U.S. stock futures pointed to a lower open on Thursday, as ongoing concerns about sluggish global economic growth hurt investor sentiment.

During early morning hours in New York, the blue-chip Dow futures shed 91 points, or 0.57%, the S&P 500 futures slumped 12 points, or 0.61%, while the Nasdaq 100 futures dropped 33 points, or 0.76%.

On Wednesday, Wall Street ended lower following the release of bleak manufacturing data from the U.S. and China, which underlined concerns over the health of the world's two biggest economies.

4. Volkswagen (XETRA:VOWG) emissions scandal hits BMW

Shares in BMW plunged as much as 7.3% amid reports in German media that its X3 xDrive 20d sport utility vehicle emitted as much as 11 times the European limit for air pollution in a road test.

Meanwhile, Volkswagen shares rallied as much as 7% after Martin Winterkorn, chief executive of the scandal-hit German carmaker, announced his resignation late on Wednesday. A successor is expected to be determined at VW's supervisory board meeting on Friday.

Volkswagen shares are still down 30% this week after the company was accused of cheating U.S. emissions tests on its diesel cars.

The scandal has raised fears among economists that it could develop into a major threat to Europe's largest economy.

5. Global central banks continue easing party

Norway's central bank cut its main interest rate to 0.75%, from 1% on Thursday, and said it may need to lower it again during the course of the coming year, citing the effects of a falling oil price on the Nordic country's economic prospects and the outlook for inflation.

Meanwhile, in Asia, Taiwan's central bank cut rates for the first time since the 2009 global financial crisis. The island’s central bank cut the benchmark discount rate to 1.75% from 1.875%, as China's slowdown and a stronger currency weighed on the nation's exports.

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