Investing.com - Here are the top five things you need to know in financial markets on Monday, September 18:
1. Global stocks push further into record-high territory
The bullish sentiment that fueled more Wall Street records on Friday carried through into the new week, with European and Asian markets rallying across the board, as global investors returned to perceived riskier assets amid cooling geopolitical tensions.
Asian shares hit their strongest level since late-2007, with benchmarks in South Korea, Hang Seng and mainland China all ending in positive territory. Japan markets were closed for a public holiday.
In Europe, shares rose to six-week highs in mid-morning trade, with almost all major bourses across the region in the green. Portugal's stocks outperformed after the euro zone country returned to an investment grade rating after more than five years.
Meanwhile, U.S. stocks were shaping up to resume a record run on Wall Street, with the major benchmarks up around 0.2%-to-0.3%.
2. Dollar climbs to 8-week high as Fed weeks kicks off
The dollar hit an eight-week high against the yen, supported by a rise in U.S. Treasury yields, as traders eyed this week's Federal Reserve meeting for insights into the outlook for monetary policy.
The Fed is widely expected to keep interest rates unchanged at the conclusion of this week's meeting, but is likely to announce a plan to start shrinking its massive $4.5 trillion balance sheet in an effort to normalize policy.
Markets will also be looking for further clues on the timing of the next Fed rate hike, with around 60% of market players expecting a move by December, according to Investing.com's Fed Rate Monitor Tool.
The dollar gained 0.5% against the yen to 111.36, the highest level since late July (USD/JPY).
3. BoE Governor Carney speaks at IMF
Bank of England Governor Mark Carney will deliver a high-profile speech at the International Monetary Fund in Washington at 11:00AM ET (1500GMT).
He has already declared himself to be part of the majority of BoE policymakers who now think the balance of its risks is shifting more towards high inflation and away from a Brexit slowdown in economic growth.
The central bank doubled down on its new warning that official interest rates are likely to rise soon last week.
The British pound slipped 0.4% against the dollar to trade at 1.3540, moving away from a 15-month peak of 1.3619 hit overnight (GBP/USD).
4. Oil prices stays near 5-month highs
Crude oil prices started the week on the front foot, holding near the five-month highs seen last week, amid optimism over the outlook for global supply and demand.
U.S. West Texas Intermediate (WTI) crude futures tacked on 22 cents, or around 0.5%, to $50.66 a barrel, not far from a five-month high of $50.88 touched last Thursday.
Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., was up 17 cents, or 0.3%, to $55.79 a barrel. It traded as high as $55.99 intraday Thursday, a level last seen since May.
5. Bitcoin prices jump back towards $4K
Bitcoin, the world's biggest digital currency by market cap, surged back toward the $4,000-level, with prices last up around 8% at $3,943.
The digital currency lost more than $1,000 in value last week and dropped below $3,000 per coin for the first time in over a month as news of a regulatory crackdown in China broke.