Here are the top five things you need to know in financial markets on Friday, March 18:
1. Dow turns positive for 2016
The Dow closed up for the fifth-straight session on Thursday with the blue-chip index entering positive territory for 2016, undoing a 2,000 point drop from the beginning of the year.
With the exception of Japan, the positive investor sentiment passed through to Asian stocks which tallied new 2016 highs.
2. U.S. crude tops $40
Despite a slight correction on Friday, U.S. oil is on track for a fifth week of gains after the barrel of West Texas broke above $40 on Thursday, the first time since December.
Crude continued to rally on hopes for a deal to freeze output between OPEC and non-OPEC members that is scheduled for April 17 in what would be the first global deal in 15 years.
Market participants will watch the Baker Hughes’ data on U.S. rig count to be released later on Friday. Last week, the data showed that the total number of U.S. oil rigs hit a record low, while the number of active oil drilling rigs fell for a 12th consecutive week.
U.S. crude oil futures slipped 0.07 % to $40.17 at 10:01AM GMT or 6:01AM ET, while Brent oil advanced 0.36% to $41.39.
3. Dollar corrects to the upside after biggest one-day loss since 2009
The greenback recovered somewhat on Friday after a slump began by the dovish tone out of the Federal Reserve (Fed) on Wednesday as officials cut their forecast for the number of rate hikes in 2016 in half to just two.
The dollar hit 5-months lows against major counterparts on Thursday with the GBP/USD tallying its largest loss since October 2009.
On Friday, it regained some ground with the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.32% at 95.07, at 10:00AM GMT, or 6:00AM ET.
4. BoJ reportedly making moves to support the dollar
The weakness in the dollar brought USD/JPY to ¥110.67, its lowest level since October 31, 2014.
A rapid rebound sparked speculation that the Bank of Japan (BoJ) was “intervening” by calling bankers in a relatively typical move by the Japanese central bank to hint at action and control its currency.
The reports did not help the benchmark Nikkei which ended down 1.25%.
5. U.S. consumer sentiment and Fed speakers ahead on a data light day
In a light economic calendar, investors will focus on the publication stateside of the University of Michigan consumer sentiment for March at 14:00GMT, or 10:00AM ET.
Markets will also pay attention to the first speeches from Fed officials after last Wednesday’s monetary policy decision.
New York Fed president William Dudley and Boston Fed Eric Rosengren will both be talking about bank supervision at 13:00GMT, or 9:00AM ET, and 15:00GMT, or 11:00AM ET, respectively.