Dollar climbs to 8-month high, AT&T to buy Time Warner, euro zone composite PMI reaches 10-month high and global stocks are mostly higher. Here are four things to know in the market on Monday, October 24.
1. Dollar Reaches 8-Month High
The greenback held near an 8-month high against other major currencies on Monday amid heighted expectations of a rate hike in the near-term.
The dollar index was up 0.01% to 98.63 during morning trade hours.
Markets are pricing in on a 69.2% chance of a rate increase by the Federal Reserve in December.
Numerous Fed officials will be making appearances throughout the day, including Chicago Fed President Charles Evan, New York Fed President William Dudley and St. Louis Fed chief James Bullard.
2. AT&T (T) Buys Time Warner (TWX)
Over the weekend, AT&T announced that it will purchase Time Warner in an $84.5 billion deal to form a telecom-media giant. The deal would be the largest acquisition this year.
Shares for AT&T were down 1.6% in early trade. Time Warner stock was down 3.55%.
3. Euro Zone Composite PMI Reaches 10-Month High
According to research group Markit, the euro zone composite PMI reached its strongest level since December 2015. Germany continues to lead the growth in the zone.
The Manufacturing PMI in Japan also surpassed expectations, with its fastest growth in nine months.
4. Global Stocks Mostly Higher
European stocks were up after an upbeat report showed an uptick in business activity in the euro zone. Equities continue to be supported by the ECB’s pledge to consider more stimulus in December.
Asian stocks were mostly lower. Japanese markets saw gains after upbeat reports, which showed an increase in its manufacturing sector and lower-than-expected decline in exports.
Futures in the U.S. pointed to a higher opening, as investors await the release of corporate earnings and Friday’s Q3 GDP report.
