Investing.com - Here are the top five things you need to know in financial markets on Monday, August 15:
1. Global stocks rise as markets keep an eye on oil
U.S. stock index futures pointed to a marginally higher open on Monday morning, as investors looked ahead to a fresh batch of corporate earnings reports and U.S. economic data, while keeping an eye on oil prices.
Meanwhile, European and U.K. stocks were up in mid-morning trade Monday, with Germany’s DAX turning positive for the year for the first time.
Earlier, Asian shares closed near one-year highs, with markets in China rising sharply on reports that a start date for the Shenzhen-Hong Kong trading link would soon be announced.
2. Oil rallies to 3-week highs on hopes for producer action
Oil prices rallied for the third session in a row on Monday, hitting a three-week high amid indications major oil producers are reconsidering a collective production freeze in a bid to boost the market.
U.S. crude was up 40 cents, or 0.9%, at $44.89 a barrel during morning hours in New York, while Brent tacked on 38 cents, or 0.81%, to $47.35 a barrel.
According to media reports on Monday, Russia is opening up to an agreement with other major oil producers to freeze output in an effort to stabilize the market.
Crude prices are up nearly 10% so far this month. Sentiment on oil received a leg up after comments from Saudi energy minister, Khalid al-Falih, late last week appeared to lend more credibility to the idea that OPEC might consider taking action to stabilize prices at a meeting in Algeria next month.
3. Japan's economic growth stalled in the second quarter
Japan’s economy nearly stalled in the second quarter amid falling exports and weak capital expenditure, putting even more pressure on policymakers to come up with stimulus measures that produce more sustainable growth.
On a quarter-on-quarter basis, gross domestic product was flat in April-June. The economy, however, grew 0.2% on an annualized basis. Economists had expected a quarterly rise of 0.2% and an annualized increase of 0.7%.
The disappointing data underlined the need for further stimulus to boost growth in the world's third-largest economy in the coming months.
4. U.S. dollar struggles at more than 1-week low
The dollar languished at a more than one-week low on Monday as disappointing U.S. retail sales and inflation data tempered expectations of a near-term interest rate hike by the Federal Reserve.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slumped to a more than one-week low of 95.19 on Friday. It was at 95.64 by early Monday.
Fed funds futures are currently pricing in just a 9% chance of a rate hike by September. December odds were at around 45%.
5. Brexit could be delayed until late 2019
Britain's exit from the European Union could be delayed until late 2019, instead of early that year as expected by some politicians, the Sunday Times reported, citing sources that were briefed by ministers.
According to the report, Theresa May's government is facing several difficulties in triggering Article 50, the formal process of leaving the European Union, with the timetable expected to be pushed back because her new Brexit and international trade departments will not be ready in time.
The pound dipped to a fresh one-month low of 1.2902, falling back towards a post-Brexit trough of 1.2794.