Investing.com - Here are the top five things you need to know in financial markets on Monday, March 14:
1. Global stock market rally continues ahead of central bank meetings
European equities were higher in morning trade on Monday, following a positive lead set in Asia, as investors looked ahead to a raft of central bank meetings and rate decisions this week. However, Wall Street pointed to a muted open after the S&P 500 closed at its highest level of the year on Friday.
Market players braced for the Bank of Japan's policy decision due on Tuesday, followed by the Federal Reserve’s rate announcement on Wednesday and the Bank of England meeting on Thursday.
2. Oil prices pull back from 3-month highs
Oil prices pulled back from three-month highs on Monday, after Iranian Oil Minister Bijan Zanganeh said his country won't join a group production freeze until it doubles its post-sanctions output. A meeting was planned for March 20 in which producers were meant to discuss the details of a proposed action to freeze output at January levels.
U.S. crude was down 84 cents, or 2.18%, at $37.67 a barrel, by 10:00GMT, or 6:00AM ET, while Brent slumped 63 cents, or 1.61%, to $39.74.
3. U.S. dollar inches up ahead of BOJ, Fed meetings
The U.S. dollar edged higher against its major counterparts in cautious trade on Monday, with investors reluctant to make major moves before the Bank of Japan wraps up its two-day policy meeting Tuesday, followed by the Federal Reserve’s policy decision Wednesday.
4. Markets shrug off weak Chinese data
Official data released over the weekend showed that China's factory output in the first two months of the year slowed to the weakest level since November 2008, adding to the view that the economy remains in the midst of an ongoing slowdown which will require Beijing to roll out more support in coming months.
Industrial production rose by an annualized rate of 5.4% in January, below expectations for a 5.6% increase and slowing from a gain of 5.9% in the preceding month, the General Administration of Customs said on Saturday.
5. Germany’s Merkel takes a hit in regional elections
German Chancellor Angela Merkel's conservative Christian Democrat's lost in two out of three state elections on Sunday as Germans punished her accommodative refugee policy with a big vote for the anti-immigration Alternative for Germany (AfD), exit polls showed.