Chinese producer-price slump stokes concerns about economy S&P futures gain as Bank of America climbs after earnings Share on Facebook Share on Twitter The dollar depreciated on speculation slowing global growth will encourage the Federal Reserve to keep interest rates lower for longer, while global stocks slid with nickel following disappointing Chinese data. The greenback weakened against almost all major peers and government bonds gained as the odds of a U.S. rate hike this year tumbled to 34 percent. Global equities fell for a second day after Chinese producer prices matched their biggest slump since the global financial crisis. Nickel fell, while U.S. crude oil traded below $47 a barrel. “Investors are still on edge,� said Markus Wallner, an equity strategist at Commerzbank AG in Frankfurt. “The problem is trying to figure out how much slowing demand from China will hurt the global economy.� China’s factory-gate deflation and less-than-expected consumer inflation added to signs of a slowdown in the world’s No. 2 economy follow a slump in September imports. Bets on a U.S. rates increase also fell after Fed Governor Daniel Tarullo said he was against a hike this year, and JPMorgan Chase & Co. and Intel Corp. gave downbeat outlooks. Stocks The MSCI All-Country World Index fell 0.2 percent as of 8:22 a.m. in New York, heading for its first back-to-back losses in two weeks. Standard & Poor’s 500 Index E-mini futures gained 0.2 percent after the stock gauge slipped for the first time in five days on Tuesday.The Stoxx Europe 600 Index dropped 0.1 percent. Bank of America Corp. rose 1.9 percent in early New York trading after posting a profit on lower expenses. Intel slipped more than 2 percent in early New York trading after saying a slowdown in demand from corporations threatens to curb sales at its server-chip division.Wells Fargo & Co. and Netflix Inc. also report earnings on Wednesday. ASML Holding NV, Europe’s largest semiconductor-equipment maker, dropped as much as 7.4 percent after projecting sales that missed the average analyst estimate. Software AG tumbled as much as 11 percent after cutting its 2015 revenue forecasts. Currencies The Bloomberg Dollar Spot Index, a gauge of the U.S. currency against 10 major peers, slid 0.2 percent. The euro gained 0.3 percent to $1.1410, after climbing 0.2 percent on Tuesday. Canada’s dollar advanced 0.4 percent and Norway’s krone increased 0.6 percent. The pound rose the most in four weeks as a report showed the U.K.’s unemployment rate unexpected fell to the lowest level since mid-2008. Sterling climbed 0.9 percent to $1.5381, set for its biggest gain since Sept. 16. It strengthened 0.6 percent to 74.22 pence per euro. New Zealand’s dollar added 1.4 percent, after central bank Governor Graeme Wheeler said further easing will depend on economic data. Singapore’s dollar snapped a two-day drop, rising 1.2 percent as the city state’s monetary authority, the only advanced economy regulator to use the exchange rate as a key policy tool, said it would “slightly� reduce the pace of the currency’s appreciation versus trading partners. Bonds German bunds rallied, with the yield on 10-year bonds falling two basis points to 0.56 percent. Yields on similar-maturity securities from France and the U.K. also dropped about three basis points. The yield on U.S. 10-year Treasuries fell one basis points to 2.04 percent. China sold 10-year bonds with the lowest coupon since 2008. The $4.4 billion of 10-year notes had a coupon of 2.99 percent, which was lower than the 3.1 percent median estimate in a Bloomberg survey. Emerging Markets The Hang Seng China Enterprises Index of mainland shares traded in Hong Kong dropped 1 percent in its first back-to-back decline in more than two weeks. The Shanghai Composite Index slid 0.9 percent. China’s consumer-price index increased 1.6 percent in September from a year earlier, while producer prices fell for a 43rd month. The MSCI Emerging Markets Index fell for a second day, losing 0.5 percent. Kenyan equities tumbled as much as 4.2 percent, the most in four years, after authorities placed a second bank in two months under administration. South Africa’s rand and Turkey’s lira gained, helping an index of 20 currencies rebound from the biggest decline since March. Commodities Gold for immediate delivery was little changed at $1,168.09, after touching $1,176.23, the highest since July 1. Nickel fell 0.8 percent, and aluminum also declined. Copper rose 0.2 percent to $5,282.00, rebounding from declines of as much as 0.8 percent. West Texas Intermediate for November delivery rose 0.1 percent to $46.71 on the New York Mercantile Exchange. It fell 44 cents on Tuesday to $46.66, the lowest close since Oct. 5. Brent crude was unchanged at $49.24. BHP Billiton Ltd., the world’s largest miner, was selling at least $2.5 billion of hybrid bonds in dollars, euros and pounds, according a person familiar with the matter.

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