Top 5 Market Insights for Thursday

Here are the top five key points to know in financial markets on Thursday, August 11:

1. Global Stock Markets Show Mixed Trends
   U.S. stock index futures exhibited mixed results on Thursday morning as investors anticipated upcoming corporate earnings reports and U.S. economic data, all while monitoring fluctuations in oil prices. In mid-morning trading, oil and gas stocks experienced pressure, following a dip in oil prices that mirrored earlier losses on Wall Street.

2. IEA Lowers Global Oil Demand Projections
   The International Energy Agency announced a reduction in its forecast for global oil demand next year, citing a bleak economic outlook and excess stock levels keeping crude oil prices subdued. The agency expects a growth of 1.2 million barrels per day in demand for 2017, which is a decrease of 100,000 barrels per day from the previous forecast and down by 200,000 barrels per day from current levels. In morning trading in New York, oil prices slipped, with one benchmark down 20 cents to $41.51 per barrel, and another down 13 cents to $43.92 per barrel. The drop in oil futures was influenced by an unexpected increase in U.S. crude inventories and record oil production in Saudi Arabia.

3. Focus on U.S. Department Store Earnings
   As the second-quarter earnings season approaches its conclusion, investors are closely watching earnings reports from major department stores. Macy’s and Kohl’s have reports due this morning, while Nordstrom will announce its results after the market closes. The department store sector is expected to report declines in both earnings and revenues, reflecting a continuing downward trend. Additionally, Chinese online retail giant Alibaba will report earnings before the market opens, with expectations of nearly 50% revenue growth year-over-year and a 13% rise in earnings, spurred by increasing internet sales.

4. Valeant Pharmaceuticals Under Criminal Investigation; Shares Fall
   Reports indicate that U.S. prosecutors are investigating Valeant Pharmaceuticals to determine if the company concealed its relationship with a specialty pharmacy, which may have inflated its drug sales. Authorities are assessing whether this concealment could be classified as defrauding insurers. The company’s shares, which trade in the U.S., dropped over 10% in pre-market trading following this news.

5. Reserve Bank of New Zealand Cuts Interest Rates
   The Reserve Bank of New Zealand has reduced its interest rates by a quarter point to a record low, citing ongoing concerns about deflation. Despite this rate reduction, the New Zealand dollar gained value against the U.S. dollar, having previously faced speculation regarding a more significant rate cut. The New Zealand dollar climbed to as high as $0.7343 before settling at around $0.7249, a 0.5% increase on the day.