Oil soars to three-week highs, global stocks climb, the dollar grows weaker and Japan releases downbeat Q2 economic data. Here are four things to know in the market on Monday, August 15.
1. Oil Climbs to Three-Week High
Oil rallied for the third straight session on Monday, touching a three-week high. The gains were driven by indications that major oil producers may reconsider an agreement on freezing production to boost the market.
U.S. crude climbed 0.9%, or 40 cents, to $44.89 a barrel. Brent gained 0.81%, or 38 cents to trade at $47.35 per barrel.
New reports on Monday indicate that Russia is open to an agreement with other major producers that would freeze output.
2. Global Stocks Rise
Index futures in the U.S. pointed to a higher opening on Monday as investors shifted their focus to a new batch of corporate earnings and economic data. A boost in oil prices also drove markets higher.
In Europe and the U.K., stocks were mostly higher on Monday. Germany’s DAX was positive for the first time this year.
Asian shares closed near a one-year high. China’s markets were sharply higher on reports that the Shenzhen-Hong Kong trading link start date would be announced soon.
3. The Dollar Weakens
The dollar slipped to a one-week low as investors digested disappointing economic data reports from Friday. Downbeat U.S. retail sales and inflation data tempered expectations for a rate hike from the Federal Reserve.
The U.S. dollar index tumbled to 95.64 after falling to a one-week low of 95.19 on Friday.
4. Japan Releases Downbeat Q2 Data
Japan reported downbeat economic growth for the second quarter. GDP was flat in the April-June quarter. The economy grew at a pace of 0.2% on an annualized basis. Economists were expecting a 0.2% quarterly rise and an annualized increase of 0.7%.
The data highlighted the need for further stimulus to boost economic growth.
