Investing.com - Here are the top five things you need to know in financial markets on Thursday, August 11:
1. Global stocks mixed as markets keep an eye on oil
U.S. stock index futures pointed to a marginally higher open on Thursday morning, as investors looked ahead to a fresh batch of corporate earnings reports and U.S. economic data, while keeping an eye on oil prices.
Meanwhile, European stocks were mixed in mid-morning trade Thursday, with oil and gas shares under pressure.
Earlier, Asian shares closed lower, tracking overnight losses on Wall Street, amid a fall in oil prices.
2. IEA cuts global oil demand forecast
The International Energy Agency on Thursday slashed its forecast for global oil demand growth next year amid a dimmer economic outlook and warned that the "massive" stock overhang is keeping a lid on crude oil prices.
In its closely watched monthly oil market report, the Paris-based organization said it expects global oil demand to grow by 1.2 million barrels a day in 2017, a decline of 100,000 barrels a day compared with last month's forecast and down by 200,000 barrels a day from this year.
U.S. crude was down 20 cents, or 0.5%, to $41.51 a barrel during morning hours in New York, while Brent dipped 13 cents, or 0.3%, to $43.92 a barrel.
Oil futures plunged on Wednesday as a surprise crude build in the U.S. combined with record-high Saudi Arabian production weighed on sentiment.
3. U.S. department store earnings in focus
While second quarter earnings season continues to wind down this week, corporate reports this morning are due from department store giants Macy's (NYSE:M) and Kohl’s (NYSE:KSS), while Nordstrom (NYSE:JWN) reports after the closing bell.
The U.S. department stores are expected to see earnings and revenues slide, an ongoing trend for the industry.
Chinese online retailing giant Alibaba (NYSE:BABA) also reports earnings ahead of the bell. Its revenues are expected to jump nearly 50% from last year, and earnings should rise about 13%, as internet sales in China and the U.S. grow.
4. Valeant reportedly under criminal investigation; shares down 10%
U.S. prosecutors have opened a criminal investigation into Valeant Pharmaceuticals over whether it hid from insurers its relationship with a specialty pharmacy that helped boost its drug sales, the Wall Street Journal reported on Wednesday.
Lawyers at the U.S. Attorney's Manhattan office are trying to gauge whether concealing those ties may have amounted to defrauding insurers, the Journal report said, citing people familiar with the matter.
U.S.-listed shares of Valeant (NYSE:VRX), which is headquartered in Canada, plunged more than 10% in pre-market trade.
5. Reserve Bank of New Zealand cuts rates to record low
The Reserve Bank of New Zealand cut interest rates a quarter point to a record low of 2.0% on Thursday and flagged the need for more cuts as it struggles to head off deflation risks.
Despite the rate cut, the New Zealand dollar surged to its highest level in more than a year against its U.S. counterpart, as there had been some speculation the RBNZ might cut interest rates by 50 basis points.
The kiwi rose to as high as $0.7343, a level not seen since May 2015, before settling back to stand at $0.7249, up 0.5% (NZD/USD).