Global

Global Business Growth Eased To Six-Month Low In October: PMI. Global economic growth eased to a six-month low in October, reflecting weaker increases in new business and a slowdown in the rate of hiring, a survey showed on Wednesday. J.P.Morgan's Global All-Industry Output Index, produced with Markit, fell to 53.6 from September's 54.8 but has now held above the 50 mark that divides growth from contraction for more than two years. Global growth in a recent Reuters poll was forecast at 3.1% this year. A global PMI covering the services industry fell to 53.7 from 55.2. The October manufacturing PMI, released on Monday, was unchanged from September's 52.2. (Reuters)

Asia

Japan Wages Rise Most In 6 Years As Abe Seeks Price Gains. Wages in Japan rose by the most in more than six years amid efforts by Prime Minister Shinzo Abe and the central bank to spur sustained price gains in the world’s third-largest economy. Average monthly salaries excluding bonuses and overtime payments rose 0.5% in September from a year earlier to 242,211 yen ($2,124), the largest increase since February 2008, the labor ministry said in Tokyo today. The total cash earnings including bonuses and overtime payments advanced for a seventh month and summer bonuses were the biggest in six years. While the labor market is tightening, earnings adjusted for inflation still fell 2.9%, a 15th straight monthly drop, underscoring the challenge that remains for Abe in stoking the economy. The job-to-applicants ratio reached the highest level in more than 20 years in recent months, encouraging companies to boost wages to attract workers. (Bloomberg)

China Loosens Restrictions On Foreign Investment. China is moving to raise its global competitiveness by loosening restrictions on foreign investment in more manufacturing and services sectors, the country’s top regulator said. In a draft foreign investment catalogue China’s National Development and Reform Commission (NDRC) cut the number of sectors where China limits foreign investment to 35 from 79, opening up areas such as real estate, steel, oil refining, paper making and premium spirits. The draft catalogue, the latest revision of a list first distributed in 2011, also removes restrictions on foreign participation in some financial services, including finance companies and insurance brokerages, which are still subject to Chinese regulations. (Reuters)

Indonesia Growth Misses Estimate, Raising Bar For Widodo. Indonesia’s growth slowed to the weakest pace since the global financial crisis as commodity prices fell, increasing the challenge for President Joko Widodo as he seeks to revitalize Southeast Asia’s biggest economy. Gross domestic product rose 5.01% in the three months ended Sept. 30 from a year earlier, the statistics bureau said in Jakarta today. That compared with a median estimate of 5.1% in a Bloomberg News survey of 26 economists, and was the smallest gain since 2009 based on previously reported data compiled by Bloomberg. (Bloomberg)

Thailand Holds Key Rate A Fifth Meeting To Support Recovery. Thailand kept its interest rate unchanged for a fifth straight meeting to spur economic growth after the government pledged to accelerate spending. The Bank of Thailand held its one-day bond repurchase rate at 2%, with monetary policy committee members voting 6 to 1 in favor, it said in Bangkok today. All 24 economists in a Bloomberg News survey predicted the decision, which extends a pause since March, the longest such streak since 2012. (Bloomberg)

North America

U.S. Services Sector Slows; Private Payrolls Increase. U.S. services industry activity slowed for a second straight month in October, the latest indication the economy has lost some momentum. Still, the economy remains on solid footing as other data on Wednesday showed a pick-up in private sector hiring last month. The Institute for Supply Management said its services index fell to 57.1 last month from a reading of 58.6 in September, drifting further from August's post-recession high of 59.6. Separately, the ADP National Employment Report showed private payrolls increased by 230,000 in October, for a record seven straight months of job gains exceeding 200,000. Private hiring had risen 225,000 in September. Job gains last month were broad-based, with mid-sized businesses adding the most workers in more than seven years. (Reuters)

Canada Economy Stronger Than Thought In First-Half 2014. The Canadian economy grew at a stronger pace in the first half of the year than previously thought, revised data from Statistics Canada showed on Wednesday. The revised figures raised second-quarter growth in gross domestic product to 3.6% from the 3.1% first reported by Statscan. The agency revised first-quarter growth slightly higher, to 1% from 0.9%. Wednesday's revisions also showed the economy finished 2013 on a stronger note than initially thought, with growth for the fourth quarter coming in at 2.9%, firmer than the 2.7% that was originally reported. (Reuters)

Europe

Eurozone Economic Weakness Continues. More evidence of economic weakness in the eurozone has come from the latest retail sales figures and a survey of business growth. Retail sales in the 18-nation bloc fell 1.3% in September from August, official data from the Eurostat statistics agency showed. Meanwhile, Markit's composite PMI reading, based on surveys of thousands of companies across the eurozone, edged up from 52 to just 52.1. Although any reading above 50 indicates expansion, October's minimal rise was smaller than economists had hoped for. "The eurozone PMI makes for grim reading, painting a picture of an economy that is limping along and more likely to take a turn for the worse than spring back into life," said Chris Williamson, Markit's chief economist. (BBC)

UK Services Growth Slows To 17-Month Low In October. UK services growth slowed to a 17-month low in October after fears over the strength of the economy hit confidence. The purchasing managers' index from Markit/CIPS fell by more than expected to 56.2 from 58.7 in September. A figure above 50 still indicates expansion, but Markit chief economist Chris Williamson said the slowdown eased pressure to raise interest rates. "[It] knocks the prospect of interest rate hikes firmly on the head," he said. (BBC)

IMF Critical Of Portugal's Waning Fiscal, Reform Effort. The International Monetary Fund on Wednesday warned that Portugal's fiscal consolidation was poised to pause next year and structural reforms were losing momentum following the country's exit from an EU/IMF bailout in May this year. "The 2015 budget is not in line with the commitments in the present medium-term fiscal framework," the mission said. It added that while continuing fiscal consolidation has to remain a priority, in its assessment "the fiscal consolidation effort is poised to pause in 2015." Its estimates for economic growth - 0.8% this year and 1.2% in 2015 - were below those forecast by the government. (Reuters)

Currencies

Dollar Hits Seven Year High Against Yen; Gains Against All G-10 Rivals. The U.S. dollar rose to a fresh seven-year high against the yen Wednesday, and rallied against most of its G-10 rivals, as investors rushed to buy the dollar, believing that Republican rule in Congress could translate to improved economic growth in the U.S. The dollar traded at 114.68 yen Wednesday morning, off its high of ¥114.8340. It traded at ¥113.69 Tuesday afternoon. Large gains against the euro pushed the ICE U.S. Dollar Index to a fresh four-year high. The index, a measure of the dollar’s strength against a basket of six currencies, was up 0.64% to 87.5340. The euro traded at $1.2467 early Wednesday, its lowest level since August 2012, compared to $1.2548 Tuesday. The pound fell to its lowest point against the greenback in a year, falling as low as $1.5869 Wednesday morning before recovering slightly. (Market Watch)

Commodities

U.S., Brent Crude Jump On Rumor Of Oil Pipeline Blast In Saudi Arabia. U.S. and Brent crude futures extended gains on Wednesday on an unconfirmed market rumor of an oil pipeline explosion in Saudi Arabia. Brent December crude futures were up $1.60 at $84.42 a barrel at 11:02 a.m. EST (1602 GMT), after jumping to $84.45. U.S. December crude was up $2 at $79.19 a barrel, having reached $79.35. (Reuters)

· Gold Tumbles 2 Pct To Four-Year Low, $1,000/Oz Exposed. Gold sank about 2% on Wednesday to its lowest since mid-2010, potentially opening the way for a fall to $1,000 as a surging U.S. dollar weakened the investment case for nonyielding bullion. Spot gold skidded to its lowest since April 2010 at $1,137.40 an ounce and was trading down 1.8% at $1,146.50 by 2:48 p.m. EST (1948 GMT). Silver was down 3.6% at $15.43 in late afternoon business, paring losses after hitting $15.13, its lowest since mid-2010. Among the other precious metals, platinum fell 0.6% to $1,208.95 an ounce, close to its lowest since 2009, while palladium fell 3.5% to $756 an ounce. (Reuters)