China releases downbeat economic data, the dollar hits a seven-month high, Wells Fargo CEO (WFC) steps down, and global stocks slump. Here are four things to know in the market on Thursday, October 13.
1. China Releases Downbeat Economic Data
Exports out of China slumped as imports fell unexpectedly in September. The news refreshed concerns that the world’s second-largest economy may be in trouble.
According to the report, exports were down 10% compared to the previous year and imports slumped 1.9%. Economists projected a 3% decline in exports and a 1% increase in imports.
China’s trade surplus stood at $41.99 billion for September, its lowest point in six months.
2. The Dollar Hits a Seven-Month High
Higher bets on the Fed raising rates before the end of the year pushed the dollar to a seven-month high on Thursday. The Fed’s meeting minutes reaffirmed views that the central bank is getting ready to raise rates in the near-term.
The minutes showed that several voting members felt a rate increase would be warranted “relatively soon.”
Markets are betting on a 65% chance of a rate increase in December, according to the Fed Rate Monitor Tool.
3. Wells Fargo CEO Steps Down
Amid heightened pressure from the public and lawmakers, Wells Fargo’s CEO and chairman, John Stumpf, stepped down on Wednesday. The banks said the CEO will be retiring immediately and will be replaced by President and COO Tim Sloan.
The news comes after it was revealed that bank employees opened up 2 million accounts without customer approval. Wells Fargo paid $185 million in penalties as a result.
4. Global Stocks Slump
U.K. and European stocks were mostly lower mid-morning. Asian shares were also lower, with the Fed’s meeting minutes in focus.
In the U.S., stock futures pointed to a sharply lower opening. Dow futures were down over 100 points, as investors shift their focus to earnings and economic data due later today.
