Here are the top five things you need to know in financial markets on Friday, March 11:
1. Crude pushes higher after IEA calls bottom, investors await U.S. rig count
The International Energy Agency (IEA) suggested on Friday that oil prices might have bottomed out due to production declines in the U.S. and other non-OPEC countries while Iran’s supply increase has not been overdone.
Investors turn their attention to Friday's weekly rig count from Baker Hughes for further indications of the supply outlook on U.S. domestic energy markets. U.S. oil rigs fell by eight to 392 for the week ending on Feb. 26, moving lower for the 11th consecutive week. With the declines, the rig count fell to its lowest level since Dec. 4, 2009 and one away from an all-time record low.
U.S. crude oil futures gained 2.35 % to $38.73at 10:55AM GMT or 5:55AM ET, while Brent oil advanced 1.88% to $40.77.
2. Euro zone sovereign bonds stabilize after the "Draghi effect"
Euro area sovereign bonds stabilized on Friday with Germany 2-Year heading for their largest weekly gain since early December.
The move came after the large sell-off on Thursday that was triggered by comments by European Central Bank (ECB) chief Mario Draghi in the press conference after announcing unprecedented monetary policy measures.
Markets focused on the ECB president’s remark that he didn’t anticipate the need for further interest rate cuts and looked past his emphasis on the fact that economic fundamentals could change.
3. China’s banks suffer from possible PBOC action, data on the horizon
Though Chinese indices managed to hold onto gains on Friday, banks led the decliners on the report that country’s central bank could be planning to allow debt-to-equity swaps by commercial lenders, an action viewed by some investors as revealing the need to prop up week balance sheets.
Meanwhile, market participants are waiting for the release of industrial output and retail sales on Saturday that should further fill out readings on activity during the Chinese New Year.
4. Rate hike expectations for BoE rise as U.K. growth estimate cut
According to the Bank of England (BoE) survey released on Friday, 38% of the public not expect rate hikes within the next 12 months, as opposed to the 35% from the previous survey.
Also on Friday, the British Chamber of Commerce cut growth forecasts for the U.K. economy for the next two years, blaming the global economy and defining the country’s performance as “mediocre” with regard to historical trends.
In U.K. data released on Friday, the trade deficit with the EU hit a record high as Britain imported more from its’ European neighbors.
5. Global stocks advance across the board
The Nikkei 225 closed with gains of 0.51%, while Dow Jones Shanghai edged up 0.08% and S&P/ASX All Australian 200 rose 0.32%.
At 10:56AM GMT or 5:56AM ET, European stocks markets moved higher with the European benchmark Euro Stoxx 50 trading up 2.80%, the DAX gaining 2.79%, the CAC 40 advancing 2.92% and London's FTSE 100 adding 1.61%.
U.S. futures also reflected solid gains around 1%. Specifically, at 10:54AM GMT or 5:54AM ET, the blue-chip Dow futures rose 0.93%, S&P 500 futures added 1.02% and the Nasdaq 100 futures gained 1.20%.