Investing.com - Here are the top five things you need to know in financial markets on Thursday, January 26:
1. Global stock market rally continues after Dow tops 20,000
A global equities rally continued on Thursday, as investors embraced riskier assets after the Dow topped 20,000 for the first time amid optimism over President Donald Trump’s policies and a solid round of corporate earnings.
U.S. stock market futures pointed to a higher open on Thursday morning, with the Dow plowing further above the 20,000-level, as investors eyed more earnings and data on weekly jobless claims and new home sales.
Meanwhile, European equities moved higher in morning trade, hitting the strongest level in about a year.
Earlier, in Asia, markets rose to 3-1/2-month highs, boosted by strong overnight gains on Wall Street.
2. Another big day of U.S. earnings ahead
U.S. fourth-quarter corporate earnings season continues to gather pace on Thursday, with majors such as Caterpillar (NYSE:CAT), Ford (NYSE:F), Fiat Chrysler (NYSE:FCAU), Comcast (NASDAQ:CMCSA), Biogen (NASDAQ:BIIB) and Bristol-Myers Squibb (NYSE:BMY) all set to report ahead of the opening bell.
After the close, Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Intel (NASDAQ:INTC), PayPal (NASDAQ:PYPL) and Starbucks (NASDAQ:SBUX) are on tap.
3. Dollar bounces back from 7-week lows
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.35% at 100.26 in New York morning trade.
It fell to 99.77 overnight, a level not seen since December 8, amid concerns over President Donald Trump's protectionist stance.
Trump signed executive orders on immigration on Wednesday, including one of border security and the intent to build a wall along the U.S.-Mexico border.
Against the yen, the dollar was up about 0.9% at 114.35, pulling away from a seven-week low of 112.53 touched earlier this week.
Meanwhile, the euro fell around 0.3% to 1.0717, pulling back from a seven-week peak of 1.0772.
4. U.K. economy grew 0.6% in final three months of 2016
Britain's economy maintained its robust momentum in the final three months of 2016, again wrong-footing expectations that June's vote to leave the European Union would rapidly take its toll on growth.
Preliminary data showed that Britain's economy expanded 0.6% in the fourth quarter of last year, maintaining the above-average pace seen in the first three months after June's Brexit referendum.
Compared with a year earlier, the economy grew 2.2%, according to the Office for National Statistics.
5. Johnson & Johnson to buy Actelion for $30 billion
U.S. healthcare giant Johnson & Johnson (NYSE:JNJ) will acquire Swiss biotech company Actelion Ltd (SIX:ATLN) in a $30 billion all-cash deal that includes spinning off Actelion's research and development pipeline, the companies said on Thursday.
The acquisition gives J&J access to the Swiss group's line-up of high-price, high-margin medicines for rare diseases, helping it diversify its drug portfolio as its biggest product, Remicade for arthritis, faces cheaper competition.
Actelion shares jumped 20% in Zurich, while J&J added 1.3% in pre-market trade in New York.