Investing.com - Here are the top five things you need to know in financial markets on Monday, July 18:
1. Turkish lira bounces, stocks plunge after failed coup attempt
The Turkish lira rebounded against the dollar on Monday, as Turkey’s government regained control of the country in the wake of a failed coup attempt over the weekend, easing investor concerns about political uncertainty and geopolitical risks.
The dollar fell by as much as 2.9% against the lira to hit 2.9265. It last stood at 2.9663 by 09:54GMT, or 5:54AM ET, down 1.6% (USD/TRY). The dollar had jumped almost 5% against the lira by late trade on Friday as news of the coup attempt spooked investors.
Meanwhile, the ISE Istanbul 30 Index (IS:IST30f) sank 4.6% in morning trade.
2. Global stocks rise, shrugging off failed Turkey coup
Global stocks traded mostly up on Monday, as investors unwound safe-haven trades in the wake of a failed military coup in Turkey over the weekend.
Asian shares were broadly higher in holiday-thinned trade, shrugging off the failed military coup in Turkey. Markets in Japan were closed for the Marine Day public holiday.
Meanwhile, European stocks opened higher, as SoftBank Group's multi-billion deal to buy British chip designer ARM Holdings lifted equities.
Elsewhere, U.S. stock index futures pointed to a higher open on Monday morning, with the Dow on track to hit fresh record highs, as investors looked ahead to a number of key earning reports.
3. Arm Holdings shares surge 45% after SoftBank deal
Japan's Softbank Corp (T:9984) has agreed to buy U.K.-based chip designer ARM Holdings PLC in a £24.3 billion ($32.2 billion) deal, the two companies said on Monday, in an ambitious bet on mobile internet that will transform the Japanese tech group.
Under the all-cash, agreed offer, Softbank will pay £17.00 for every ARM share - a premium of more than 40% to Friday's close.
ARM shares (LON:ARM) jumped nearly 43% in London, while U.S.-listed shares (NASDAQ:ARMH) on the Nasdaq Composite were up 44% in pre-market trade.
4. Bank of America reports Q2 earnings
Bank of America Corporation (NYSE:BAC) is set to report second quarter results at 11:45GMT, or 6:45AM ET, Monday morning. The bank is projected to report earnings of 34 cents a share on revenue of $20.53 billion.
Other companies slated to report earnings ahead of Monday’s opening bell include, Charles Schwab (NYSE:SCHW) and toymaker Hasbro (NASDAQ:HAS). After the market closes, IBM (NYSE:IBM), Netflix (NASDAQ:NFLX) and Yahoo (NASDAQ:YHOO) are on the earnings docket.
5. BoE rate cut hopes take a hit
Bank of England policymaker Martin Weale said on Monday he was unsure whether he would back an interest rate cut at next month's BoE meeting, in contrast to most of his colleagues who think stimulus is likely after Britain voted to leave the EU.
Weale - who will step down after the August meeting - did not see panic among consumers or businesses after the June 23 Brexit vote and said the central bank should not be afraid of disappointing markets.
The BoE held off from cutting rates last week, but hinted that it will ease monetary policy at its next meeting in August as it devises the exact size and nature of its stimulus measures.
Sterling gained against the dollar after Weale's comments, with GBP/USD climbing to a session high of 1.3291, before falling back to 1.3256, up 0.6% on the day.
In other Brexit-related news, International Trade Secretary Liam Fox is aiming for a Brexit date of January 1, 2019, but said the time could "be brought forward if necessary."