Investing.com - Here are the top five things you need to know in financial markets on Wednesday, September 13:
1. Wall Street set to pull back from record highs
After Wall Street closed the prior session at record highs, U.S. futures pointed to a slightly lower open on Wednesday as investors locked in profits. At 5:58AM ET (9:58GMT), the blue-chip Dow futures lost 21 points, or 0.09%, S&P 500 futures fell 4 points, or 0.14% while the Nasdaq 100 futures traded down 11 points, or 0.18%.
Elsewhere, European bourses showed mixed trade with the pan-European Stoxx 600 set to break a five-day winning streak Wednesday as chipmakers and miners weakened investor sentiment.
At 5:59AM ET (9:59GMT), the European benchmark Euro Stoxx 50 gained 0.14%, Germany’s DAX inched up 0.09%, while London's FTSE 100 fell 0.47%.
Earlier, Asian shares closed broadly higher Wednesday, taking a cue from Wall Street’s record close. Japan’s Nikkei lead advancers ending with gains of 0.44%, while China’s Shanghai Composite rose 0.14%.
2. Dollar breaks 2-day winning streak
The dollar registered slight losses against major rivals on Wednesday, putting an end to two straight days of gains as investors turned their attention to upcoming U.S. economic data for fresh clues on the timing of the Federal Reserve's balance sheet reduction and its ability to raise interest rates again this year.
A report on producer prices is due at 8:30AM ET (1230GMT) Wednesday, followed by closely-watched consumer price inflation data on Thursday.
Markets remain skeptical the Fed will raise rates again before the end of this year due to worries over the subdued inflation outlook, but it is widely expected to start the process of reducing its balance sheet sometime this fall.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dropped 0.05% at 91.84 by 6:00AM ET (10:00GMT).
3. Apple’s “late” iPhone launch takes toll on chipmakers
Apple (NASDAQ:AAPL) suppliers were struggling on Wednesday after the new iPhone release disappointed with a later than expected shipping date.
Apple's new $999 iPhone X will begin shipping on November 3 and there was also concern that the price tag may dent demand for the device in markets such as China.
Chipmakers supplying to Apple were among the worst performers Wednesday, with Ams (SIX:AMS) down 3.9%, while Dialog Semiconductor (DE:DLGS) lost 0.9% and STMicroelectronics (PA:STM) fell 1.1% by 6:01AM ET (10:01GMT).
4. Jamie Dimon calls bitcoin a fraud
JP Morgan chief exec Jamie Dimon called bitcoin a “fraud" at a conference late Tuesday.
"It's just not a real thing, eventually it will be closed," Dimon said, adding that he would fire any of his employees trading in the cryptocurrency.
“You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart,” he argued.
Dimon's criticism added to concerns about China's banning of initial coin offerings (ICOs) and pushed the digial currency below the $4,000 level on Wednesday in what has recently be considered the most crowed trade in the market.
On the U.S.-based Bitfinex exchange, bitcoin tumbled 5.33% or $221.20 to $3,928.20 by 6:02AM ET (10:02GMT).
5. Oil rises on IEA forecast for strong demand
Oil prices were on the rise on Wednesday as the International Energy Agency predicted that global demand was set to accelerate at its fastest pace in two years and increased its 2017 growth estimates.
Traders also looked ahead to official U.S. crude inventory data 10:30AM ET (14:30GMT). Analysts expect crude oil inventories rose by around 3.2 million barrels at the end of last week.
If confirmed, it would mark the second weekly gain in a row.
After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories increased by roughly 6.2 million barrels in the week ended September 8, beating expectations for a build of approximate 6.0 million.
U.S. crude oil futures gained 1.04% to $48.73 at 6:03AM ET (10:03GMT), while Brent oil traded up 0.64% to $54.62.