Here are the five things you need to know in financial markets on Thursday, July 21:
1. Yen jumps after BOJ Kuroda rule helicopter money
The yen rose the most in almost a month against the US dollar Thursday, after Bank of Japan Governor Haruhiko Kuroda, dismissed the idea of using “helicopter money” to stimulate Japan’s economy
The dollar fell to a session low of ¥ 105.43 against the yen. It was trading at ¥ 105.60, down 1.2% on the day.
Earlier, the dollar rose to a six-week high of ¥ 107.49, after reports that the Japanese government was planning to compile a stimulus package of at least ¥ 20 trillion ($ 188 million) to help national economy emerging from deflation, and to defend against possible adverse effects of Brexit.
2. Global stocks collapsed in the red as the hope BOJ stimulus fades
Global stocks traded mostly down on Thursday as comments by the governor of the Bank of Japan, Haruhiko Kuroda fueled speculation the central bank may keep the fire and did not provide more stimulus at its policy meeting next week, dampening appetite for riskier assets.
USA stock futures were lower again after Kuroda’s comments on Thursday morning, as traders awaited a raft of both earnings and data.
Meanwhile, European stock markets retreated maximum four weeks, as investors looked forward to the latest monetary policy decision from the European Central Bank.
Earlier, Asian stocks rose to nine-month highs, with Japanese stocks leading gains after local media reports suggested that the government was preparing a stimulus package of considerable size.
3. Decision ECB Draghi press conference before
Rate decision European Central Bank is due at 11: 45GMT or 7:45 am ET on Thursday, with most of the focus likely to be on the press conference the president, Mario Draghi, 45 minutes after ad.
The consensus is that the ECB will leave interest rates unchanged, as expected Draghi to hint at a new stimulus, expected to arrived in September to offset the blow to the economy of the British decision to leave the Union European.
4. US season gathers steam results
General Motors (NYSE: GM), Southwest Airlines, Union Pacific (NYSE: UNP), Blackstone (NYSE: BX), travelers, The Bank of New York Mellon (NYSE: BK), Dominos Pizza and Dunkin Brands are among the tens companies report second-quarter results before the opening.
After the close, Starbucks (NASDAQ: SBUX), AT & T (NYSE: T), Chipotle, Visa, PayPal, Capital One, Schlumberger and Boston Beer report.
equites Americans have been boosted in recent sessions amid signs the US corporate earnings season It may be less severe than feared. According to Thomson Reuters, 67% of the 70 S & P 500 companies reporting so far exceeded earnings estimates.
Now expects second-quarter earnings of 500 companies in the S & P fell 3.8%, lower than the estimated decline of 4.5% earlier this week, according to Thomson Reuters I / B / E / S.
5. US data in focus amid bets new rate rise September
Weekly jobless claims data and survey Philly Fed is expected that both at 12: 30GMT or 8:30 AM ET. The housing price index FHFA is at 13: 00GMT, or 09 a.m. ET, and the index of leading economic indicators and existing home sales are both scheduled for 14: 00GMT, or 10 a.m. ET.
A recent series of upbeat economic reports, including June housing starts, retail sales, manufacturing ISM and employment were all better than expected, suggesting that the economic growth rate rebounded in the second quarter.
Bullish data could allow the Federal Reserve will raise interest rates sooner than expected. Futures interest rates are currently pricing in a 19% chance of a rate hike in September. December odds were at 51%, compared with less than 20% a week ago and up 9% at the beginning of this month.