Here are the top five things you need to know in financial markets on Thursday, July 25:
1. ECB takes spotlight among central bank activity
The European Central Bank will announce its at 7:45 AM ET (11:45 GMT) amid speculation over a cut to its key deposit rate, currently at -0.4%. The likeliest alternative is that President, signals a cut in September with a change to the bank's guidance.
Weak Eurozone business surveys released this week, not least another drop in the closely watched German index this morning, have strengthened the case for ECB action already today.
The ECB's announcement comes against a global backdrop of easier monetary policy, with the U.S. Federal Reserve widely next week.
Reserve Bank of Australia Governor Philip Lowe said overnight that it was “reasonable to expect an ”, barely a month after cutting the country's key interest rate to an all-time low.
Ahead of the ECB announcement, Turkey is forecast to announce a big cut to its policy rate at 7:00 AM ET (11:00 GMT). President Recep Tayyip Erdogan - who recently fired the last central bank governor - has reportedly asked for a 3 percentage point cut.
2. Dollar hovers near 1-month high thanks to rivals' weakness
Even though markets fully expect a to U.S. on July 31 and place odds at more than 25% for a 50 basis point cut, weakness in the U.S. dollar’s major rivals has seen the greenback rise for a fifth straight session to hover near a one-month high reached on Wednesday.
Expectations for a dovish ECB announcement, the RBA’s cautious guidance and fears of a hard Brexit after Boris Johnson took over as prime minister in the U.K. have all put pressure on their respective currencies.
Traders in the greenback will still keep an eye on U.S. economic data due at 8:30 AM ET (12:30 GMT). June and weekly will be watched for their potential impact on Fed policy.
3. Facebook leads tech earnings parade
Shares in Facebook (NASDAQ:) were up nearly 2% in premarket trade after it managed to top thanks to .
Chief Financial Officer David Wehner officer warned, however, that revenue growth could decelerate in the coming quarters.
The earnings news came after the Federal Trade Commission announced a with Facebook (NASDAQ:) in an agreement that will require the company to establish an internal privacy oversight committee.
The whether big technology companies - likely including Facebook (NASDAQ:), Google (NASDAQ:), Amazon (NASDAQ:) and Apple (NASDAQ:) - are engaged in anticompetitive behavior, addressing a rising tide of criticism that they have become too powerful, to the detriment of consumers.
4. Tesla, Ford results hit sentiment in swirl of auto sector news
Shares in Tesla (NASDAQ:) tumbled more than 10% in premarket trade after the company once again . The company's net loss was bigger than expected and it also announced that battery pioneer J.B. Straubel will step down from his role as chief technology officer.
The quarterly loss was deeper than expected, and despite record deliveries in the quarter, revenue came in lighter than analysts' expectations.
Shares in Ford (NYSE:) sank as missed consensus and the company offered .
Japanese rival Nissan (T:) also said it would , a 2,500 increase to the previously announced number, after quarterly profits plunged by 98.5%.
Shares in German automaker Volkswagen (DE:) bucked the trend with an , but its shares still slipped.
Elsewhere, Toyota (NYSE:) announced a and a new joint venture to expand collaboration with the firm in China.
5. U.S. futures mixed ahead of next round of earnings
U.S. futures pointed to a mixed open on Wall Street as traders prepped for another round of earnings.
With 138 firms having reported earnings as of Wednesday’s close, The Earnings Scout countered fears of a potential earnings recession, saying that, so far, “S&P earnings growth has certainly slowed, but it’s not negative."
Shares of Anheuser Busch Inbev (NYSE:) jumped 6% in premarket trade after the brewer of Budweiser beat , registering its fastest growth in beer sales in more than five years in the second quarter.
Still to come, 3M (NYSE:), Bristol-Myers Squibb (NYSE:), Comcast (NASDAQ:) and (NYSE:) will report before the bell. After the market close, Google-parent Alphabet (NASDAQ:), Amazon (NASDAQ:) and Intel (NASDAQ:) release quarterly earnings.