Here is what you need to know.
The Bank of England cut rates. In a unanimous vote, the central bank lowered its benchmark interest rate 25 basis points to a record low 0.25% as it looks to stabilise the British economy following the Brexit vote. The bank also announced it will expand its QE program by GBP60 billion and purchase corporate bonds. BOE head Mark Carney’s press conference will begin at 7:30 a.m. ET.
The US is importing more oil than its producing. A large OPEC supply is causing the US to import more oil than it produces for the first time since January 2014. According to Vivek Dhar, a mining and energy commodities analyst at Commonwealth Bank, “the increase in US oil imports reflects OPEC’s strategy to target market share instead of price.” West Texas Intermediate crude oil is down 0.8% at $40.49.
Brazil’s impeachment committee votes. Thursday’s the day a Brazilian Senate committee will vote on whether or not president Dilma Rousseff should be removed from office. According to AFP, the vote isn’t binding, and is expected to overwhelmingly favour Rousseff’s ousting.
Revenue from tech deals is at the highest level since the dot-com bubble. Tech M&A has brought in $1.9 billion across the globe so far in 2016, according to Dealogic. That’s up 11.8% from a year ago, and trails only 2000 ($2.2 billion) for the highest total year-to-date.
There’s one market where electronic trading doesn’t work so well. Craig Donohue, executive chairman at The Options Clearing Corporation who was CEO of the Chicago Mercantile Exchange, says electronic trading doesn’t work as well for options. “I’ve been away from it for a few years, but at least during my time I think we certainly saw that electronic trading in our more complicated options markets were, I think, significantly more difficult to achieve than in the futures markets, where you just had fewer instruments, concentrated liquidity in,” Donohue said.
Tesla missed on earnings. The electric automaker lost an adjusted $1.06 per share on adjusted revenue of $1.56 billion. Tesla says it’s on track for 50,000 deliveries in the second half of the year, which would put it at the low end of its 2016 guidance of 80,000 to 90,000 deliveries.
Toyota slashed its forecast. The world’s largest automaker says full-year operating profit will come in at 1.6 trillion yen ($15.76 billion), down from its previous forecast of 1.7 trillion yen. That would represent a 44% drop in profit, mostly due to the strength of the Japanese yen.
Stock markets around the world are up. Spain’s IBEX (+1.3%) leads the gains in Europe after Japan’s Nikkei (+1.1%) led the advance in Asia. S&P 500 futures are down 0.50 points at 2156.50.
Earnings reporting remains heavy. Chesapeake Energy, Fannie Mae, Kellogg, and MGM Resorts are among the names reporting ahead of the opening bell while Kraft Heinz, LinkedIn, Priceline highlight the names releasing their quarterly results after markets closed.
US economic data flows. Initial jobless claims will cross the wires at 8:30 a.m. ET and factory orders are due out at 10 a.m. ET. Then, at 10:30 a.m. ET, natural gas inventories will be released. The US 10-year yield is little changed at 1.54%.
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