What you need to know:
> Facebook shares down 18%, Nasdaq retreats from record high.
> European stocks climb as trade war worries recede.
> US dollar index strengthens, euro slides below $1.17.
> ECB leaves rates on hold and confirms bond buying will end in December.
Stock Market News Today:
Facebook shares plummet after poor results.
Shares in Facebook tumbled as much as 24 per cent after the bell on Wednesday in one of the largest ever drops in market value, as the company forecast slowing revenue and lower margins, missed revenue expectations and saw about a million European users leave the platform in the last quarter.
Qualcomm to ditch NXP deal in favour of buybacks.
Qualcomm has admitted defeat in its $44bn bid for Dutch chipmaker NXP after failing to win approval from Chinese regulators for what would have been the semiconductor industry’s largest ever takeover.
House Republicans seek to impeach Rod Rosenstein.
Conservative lawmakers have filed articles of impeachment against Rod Rosenstein, the justice department official overseeing the Russia investigation. The move by House Republicans escalated their long-running feud with the number two at the DoJ over the probe into alleged Russian 2016 presidential election interference.
Russian president Vladimir Putin is expected to meet his Turkish counterpart Recep Tayyip Erdogan at the Johannesburg meeting of emerging economies on Thursday. Meanwhile, in Africa, both India’s Narendra Modi and China’s Xi Jinping are on a mission to woo resource-rich countries. (Nikkei Asian Review)
Mario Draghi is set for a grilling on a core element of the European Central Bank’s new strategy.
Wall Street is off to a soft start as a steep fall for Facebook shares — after the social-networking site lowered its revenue expectations — weighs on the wider technology sector.The tech-heavy Nasdaq Composite index is down 0.8 per cent down from Wednesday’s record close, while the S&P 500 is 0.2 per cent lower.
The euro is on the back foot as markets digest comments from Mario Draghi, president of the European Central Bank, at its latest policy meeting. The ECB, as expected, held interest rates and confirmed it would halt its bond purchases in December.
European equities climbed after the EU and the US agreed to launch new negotiations to defuse rising transatlantic trade tensions.
The Stoxx Europe 600, a benchmark for the region, is up 0.6 per cent. Germany’s Dax led the way higher among European bourses with a 1.7 per cent gain.
US president Donald Trump and Jean-Claude Juncker, the president of the European Commission, said on Wednesday they had agreed to work together to remove all tariffs, trade barriers and subsidies on non-auto industrial goods.
The dollar index, measuring the US currency against a basket of peers, is 0.3 per cent firmer as the euro falls 0.6 per cent to $1.1658 against the dollar, while the pound is off 0.4 per cent, at $1.3132. The dollar is 0.1 per cent softer versus the yen at ¥111.10.
Yields on 10-year Japanese government bonds inched toward 0.1 per cent, marking a fresh six-month high amid speculation the country’s central bank could scale back its stimulus programme at its meeting next week.
Rob Carnell, chief economist and head of Asia-Pacific research for ING, said that the BoJ’s removal of any mention of reaching its inflation targets in 2019 at its April meeting had prompted some to suggest the bank might downgrade its forecast and adopt a lower target at its meeting next week.
However, he is sceptical. “For all that it may tinker with other aspects of its policy, the BoJ, in our view, does not seem to have any intention of changing its inflation target, and any changes may amount to no more than tweaking their ETF buying,” he said.
The 10-year US Treasury yield is up 1 basis point at 2.95 per cent while that on the two-year note is 1bp higher at 2.67 per cent.
Oil prices rose slightly with Brent crude up 0.1 per cent at $74.08 a barrel, while West Texas Intermediate is fractionally higher at $69.33 as markets digest the news that Saudi Arabia suspended oil shipments through the Red Sea following an attack from Yemeni Houthi rebels on two of its giant crude carriers.
On Wednesday, the Energy Information Administration said US stockpiles fell more than expected in the week ended July 20.
Gold is down $4 at $1,226 an ounce.