Central bank meetings are in focus, oil is rallying, global stocks are higher and the dollar is weaker. Here are four things to know in the market on Monday, September 19.
1. Markets Are Focused on Central Bank Meetings This Week
The Federal Reserve and the Bank of Japan will hold their monetary policy meetings this week. Expectations of the Fed raising rates are low, but the Bank of Japan’s meeting, which is being viewed as a comprehensive review of current monetary policy, will likely drive markets this week.
2. Oil Rallies On Prospect of Output Deal
Oil prices were sharply higher on Monday after comments from Venezuelan president Nicolas Maduro, who stated that OPEC and non-OPEC producers were close to reaching a deal on freezing output. Maduro hopes to announce a deal this month.
Reports of fighting near Libyan oil ports also helped push prices higher.
U.S. crude was up 60 cents to $44.22, while Brent was up 1.2% to $46.32.
3. Global Stocks Higher
Despite Japanese markets being closed for a holiday, global markets are broadly higher. U.K. and European stocks were up more than 1% during mid-morning. Shares in other parts of Asia were mostly higher as investors took a cautious stance ahead of the BoJ’s meeting this week.
In the U.S., futures pointed to a higher opening, as the rally in oil prices boosted sentiment.
4. The Dollar Weakens
The dollar was weaker against a basket of major currencies as investors remain cautious ahead of the Fed’s and the Bank of Japan’s monetary policy meeting. The dollar index was down 0.25% mid-morning, at 95.81.
The index touched a high on Friday, reaching 96.11.
The euro strengthened against the dollar, climbing 0.15% to 1.1170. The dollar was weaker against the yen, falling 0.4% to 101.9 after reaching a low of 101.7.
