What's moving markets today: March 7, 2019
The European Central Bank just announced it expects interest rates to remain unchanged at their record low levels rough the end of 2019.
The bank also announced a series of new, cheap loans for banks and cut this year's Eurozone growth forecast from 1.7% to 1.1%.
These new operations will help to preserve favorable bank lending conditions and the smooth transmission of monetary policy," the ECB said in a statement.
- European markets reaction: France's CAC 40 is up 0.2%. Germany's DAX gained 0.1%. But UK's FTSE 100 remains down and is off 0.13%.
- The euro fell to $1.13, its lowest level against the dollar since mid-November.
- Burlington Stores (BURL) just released its fourth-quarter earnings. Despite profits beating expectations, it missed on sales. Guidance is in line with analysts forecasts, too. Shares are down more than 5% in premarket trading, wiping away all of its year-to-date gains.
- American Eagle (AEO) profits beat estimates, but its revenue fell short of analysts' expectations. The retailer, which reported fourth-quarter earnings last night, said it expects this quarter's profits to come in lower-than-expected because it's spending money on expanding Aerie, its successful lingerie brand. Shares are down nearly 3% in premarket trading.
- US stock futures are pointing lower.
- European markets opened mostly down, with shares in Germany off the most.
- Asian markets ended mixed. The Shanghai Composite gained 0.1%, while the Hang Seng led the Nikkei 225 lower. They fell 0.9% and 0.7% respectively.
- Yesterday: The Dow Jones industrial average shed 0.5%, the S&P 500 dropped 0.7% and the Nasdaq slipped 0.9%
Huawei announced it is suing the US government in its most aggressive move yet to fight back against accusations that its technology poses a global security threat.
The Chinese tech giant said Thursday that it has filed a lawsuit in Texas challenging a recent US law that bans federal agencies from buying its products.
The fight between the company and the US government is becoming more complex:
- US prosecutors have filed criminal charges against Huawei in Washington state and New York.
- Huawei pleaded not guilty in Seattle last week to charges that it tried to steal trade secrets from T-Mobile (TMUS).
- The company's arraignment in Brooklyn on charges that it worked to skirt US sanctions on Iran is scheduled for later this month. Huawei's chief financial officer, Meng Wanzhou, has also been charged in that case. She was arrested in Canada in December and faces extradition to the United States.