Equity markets rise and the dollar falls after the release of Fed minutes

US equity markets

US equity markets ended the session higher on Wednesday. Minutes of the last Federal Reserve rate meeting in September, when rates were left on hold, showed that there was a wide variation in views on whether any additional interest rate increases would be needed. The balance indicated that one more hike would be likely, but while there were conflicting opinions on the need for more policy tightening, there was unanimity on one point: that rates would need to stay elevated until policymakers are convinced inflation is heading back to 2%.

The USD

The USD fell at the release of the minutes. Investors now await US inflation data Economists expect a 3.6% rise in September year-on-year (YoY), down from 3.7% in August. The pace of core consumer price index (CPI) growth is also expected to slow, down to 4.1% in September from 4.3% the previous month.

UK GDP

In the UK, GDP rose 0.2% in August month-over-month (MoM), in line with expectations. Industrial production fell 0.7% in August MOM, more than the 0.2% fall anticipated.

easyJet

On the corporate front, easyJet expects to deliver record pretax profit in Q4, between £650 and £670 million, and announces having reached a deal to buy 157 more aircraft.

Delta Air Lines

Over in the US, Delta Air Lines Lines is due to report its earnings for the third quarter before the market opens. Strong demand for travel is expected to have positively impacted Delta's performance. Earnings are expected at $1.97 per share, to be compared with the $1.51 reported for the same quarter a year ago. Revenue is also forecast to improve, to $14.55 billion from $12.84 billion a year ago. Ahead of the release, several analysts have reaffirmed their buy ratings on the stock.

Walgreens Boots Alliance

Also expected before the opening bell: Walgreens Boots Alliance. Earnings are expected to come in at 69 cents per share. In the same quarter a year ago, EPS came in at 80 cents. Revenue is forecast to increase to $34.82 billion from $32.45 billion a year ago.

The United Auto

The United Auto Workers union has expanded its ongoing strike by shutting down Ford's biggest plant. The UAW said 8,700 workers walked out of the truck plant in Kentucky in response to Ford refusing to move further in contract bargaining. It is a sharp escalation of its strike against Ford. General Motors and Stellantis, which began last month. The UAW is pressuring the carmakers to grant higher pay and make other improvements in new labour agreements.

Microsoft

After the closing bell last night, Microsoft announced that it had received a tax bill from the US Treasury for $28.9 billion, plus penalties and interest. The figure, which Microsoft disputes, stems from a long-running IRS investigation into how Microsoft allocated its profits among countries and jurisdictions in the years 2004 to 2013, according to a securities filing. Microsoft says it will be making an appeal against the decision, a process expected to take several years.

Oil prices

Oil prices fell all through the day yesterday. WTI lost about $3 in the past 24 hours. On Wednesday evening, application programming interface (API) data showed that US crude oil stockpiles swelled by about 12.9 million barrels. Admittedly, refinery run rates are much lower due to autumn maintenance, but fuel demand is also slowing. Gasoline inventories also rose by 3.6 million barrels.