Investing.com - Here are the top five things you need to know in financial markets on Monday, July 25:
1. Global stocks gain ahead of central bank meetings
Global stock markets traded mostly higher on Monday, as investors looked ahead to key central bank meetings later this week. The Federal Reserve will meet on July 26 to 27, followed by the Bank of Japan’s policy meeting on July 28 to 29.
The Fed is not expected to take action on interest rates at the conclusion of its two-day policy meeting on Wednesday, but market players will scrutinize its policy statement for fresh hints on the timing of interest rate hikes over the next several months.
The BOJ, on the other hand, is widely expected to ease policy further at a policy review ending on Friday, which could include a rate cut deeper into negative territory and additional asset purchases.
U.S. stock index futures pointed to a modestly higher open, as investors eyed a fresh batch of corporate earnings reports, as well as the Federal Reserve and Bank of Japan’s policy meetings scheduled later in the week.
Meanwhile, European stock markets were slightly higher in morning trade on Monday, as investors digested corporate earnings and prepared for central bank meetings in the U.S. and Japan later this week.
Earlier, Asian stocks held near nine-month highs on Monday, as investors are hoping for a big stimulus announcement from the Bank of Japan later this week.
2. Verizon to buy Yahoo for $4.8 billion
Verizon Communications Inc. (NYSE:VZ) has agreed to pay $4.8 billion to acquire Yahoo! Inc (NASDAQ:YHOO), according to a person familiar with the matter. The announcement will come before the start of New York trading hours, the source added.
The deal will end months of uncertainty about Yahoo's future after the company announced plans to review strategic alternatives in February.
The transaction would boost Verizon's AOL internet business, which the company acquired last year for $4.4 billion, by giving it access to Yahoo's advertising technology tools, as well as other assets such as search, mail, messenger and real estate.
3. Nintendo shares plunge on Pokemon profit warning
Shares in Nintendo Ltd (T:7974) took a steep dive Monday after the company warned investors that the wildly popular Pokemon GO mobile app would have only a "limited" impact on its earnings. The stock sank nearly 18% in Tokyo, wiping out about $6.4 billion in market value.
The Kyoto-based gaming company, which is due to report first-quarter results on Wednesday, surprised markets with a statement on Friday that income garnered through its 32% stake in affiliate Pokemon Company, which owns the licensing rights, would be limited and that it did not plan to revise its earnings outlook for now.
4. German businesses brush off Brexit uncertainty
German business sentiment fell less than forecast in July, in a sign that Europe's largest economy proved resilient to the immediate aftermath of the U.K. Brexit vote.
The German Ifo economic institute said its business climate index dropped to 108.3 this month from a reading of 108.7 in June. Economists forecast a decline to 107.5.
5. Oil languishes near 3-month lows amid glut concerns
Oil prices struggled near the lowest level in almost three months on Monday, as concerns over a global supply glut intensified after data showed that the U.S. oil rig count rose for the fourth week in a row last week.
U.S. crude was down 27 cents, or 0.61%, to $43.92 a barrel, while Brent shed 26 cents, or 0.56%, to $45.83 a barrel.