Global Stocks Tick Up Amid Central-Bank Decisions, Earnings
By Avantika Chilkoti
Global stocks edged up Thursday as a slew of central-bank
decisions and major corporate earnings provided mixed clues on the
state of the global economy.
The Stoxx Europe 600 index rose 0.6%, even as Finland's Nokia
dropped 20% after disappointing investors by slashing its full-year
forecast. The world's second-biggest telecom-equipment maker was
the worst performer in Europe as the growing costs of rolling out
gear for 5G mobile networks also forced it to halt its
In the U.S., earnings reports triggered large swings in some
stocks ahead of the opening bell. Futures tied to the Dow Jones
Industrial Average were up 0.2%.
Twitter dropped over 18% in premarket trading after the
social-media company's third-quarter earnings fell short of
expectations. Its fourth-quarter revenue forecast also disappointed
Tesla shares rose 18% in off-hours trading after the
electric-car maker surprised investors by reporting a profit for
the third quarter, allaying fears that it was prioritizing growth
and production over profit. PayPal Holdings rose 8.6% after the
payments company posted better-than-expected results in its latest
quarter with a 19% rise in revenue.
Ebay dropped 7.8% in premarket trading after the online
marketplace forecast its first quarterly revenue decline in four
years. Ford shares fell 4% after the car maker lowered its
full-year target, sparking worries that a broad restructuring at
the company isn't succeeding in driving earnings growth.
Baxter International declined 5.9% after the health-products
company said it may need to restate results for at least five
The European Central Bank left interest rates unchanged and
stuck with a plan to start buying bonds next month. The yield on
German 10-year bonds were up to minus 0.387% from minus 0.391% on
Wednesday. The euro was broadly flat on the dollar.
Other central banks also took action on Thursday. Bank Indonesia
cut interest rates by a further 25 basis points, sending the rupiah
down 0.5% on the dollar. Meanwhile, Turkey's central bank surprised
markets with a bigger-than-expected cut to its key repo rate,
sending the lira down 0.4%. The Norwegian and Swedish central banks
held their benchmark rates unchanged.
Meanwhile, the U.K.'s FTSE 100 index outpaced other major gauges
in the region, rising 0.9%. European Council President Donald Tusk
is asking leaders to give the U.K. until Jan. 31 to leave the
European Union. The pound ticked down about 0.1% against the U.S.
A number of blue-chip companies in the U.S. including Intel,
Amazon.com and Visa are set to report third-quarter earnings
through the day.
Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com
(END) Dow Jones Newswires
October 24, 2019 09:12 ET (13:12 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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