Investing.com - Here are the top five things you need to know in financial markets on Monday, March 18:
1. U.S. Investigating FAA's Approval of Boeing 737 Max
The U.S. Department of Transportation launched a probe into whether there were lapses in the Federal Aviation Administration’s approval of Boeing 737 Max planes after a fatal crash in Indonesia last October, The Wall Street Journal reported on Sunday.
The probe is focused on a flight safety system suspected of playing a role in the crash of a Boeing 737 Max 8 operated by Indonesia’s Lion Air, which crashed into the Java Sea in October last year. None of the 189 people on board survived.
Earlier this month, the same plane model operated by Ethiopian Airlines crashed, killing all 157 on board. Ethiopian Transport Minister Dagmawit Moges said on Sunday that preliminary data retrieved from the plane’s flight data recorder showed “a clear similarity” with the Indonesian incident.
Boeing Co (NYSE:BA) shares were down around 2.4% to a seven-week low of $370 in premarket trade by 5:40AM ET (10:40 GMT).
2. Proposed Trump-Xi Summit May Be Pushed Back to June
A proposed summit between U.S. President Donald Trump and China's Xi Jinping to end the ongoing trade conflict between the world's two largest economies may be pushed back to June, the South China Morning News reported on Saturday.
The proposed meeting to sign a trade agreement at Trump's Mar-a-Lago club had originally been targeted for March, then pushed back to April.
A source told the Hong Kong-based newspaper that the latest sticking point is a split among White House officials over whether to include enforcement mechanisms over Chinese trade reforms, or declare success at an agreement in principle.
Both the U.S. and China cited progress in the trade talks last week, but Trump pointedly left open the option of walking out if terms were not to his liking.
3. Deutsche Bank , Commerzbank in Merger Talks
Germany's two largest publicly-listed banks, Deutsche Bank and Commerzbank, confirmed that they had opened talks on a possible merger, although both also warned that a deal was far from certain.
Deutsche Bank's (DE:DBKGn) shares jumped 3.4% in Frankfurt, while Commerzbank's (DE:CBKG) shares rallied 5.4% on the news.
The German government, which holds a stake of more than 15% in Commerzbank following a bailout, has pushed for a merger given concerns about the health of Deutsche, which has struggled to generate sustainable profits since the 2008 financial crisis.
4. Wall Street Set for Subdued Open
U.S. stock index futures pointed to a subdued open, as a lack of visible progress in ending the U.S.-China trade war dampened sentiment.
The blue-chip Dow futures, where Boeing has the largest weighting, were down 45 points, or about 0.2%. Futures for S&P 500 and Nasdaq were trading little changed.
Elsewhere, European stocks hovered around the flatline, as markets await some clarity on where the Brexit drama was heading.
British Prime Minister Theresa May has only three days to win approval for her deal to leave the European Union if she wants to go to a summit with the bloc's leaders on Thursday with something to offer them in return for more time.
Earlier, markets in Asia rose, with shares in mainland China leading gains.
Read more: Steady Interest Rates Driving REITs Shares Higher; 3 Poised For More Gains: Jesse Cohen
5. Dovish Fed Bets Send Dollar to 2-Week Low
Away from equities, the U.S. dollar slumped to a two-week low amid speculation the Federal Reserve will sound decidedly dovish at its policy meeting later this week.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was a shade lower at 95.92, the weakest since Feb. 28.
Weaker-than-forecast U.S. economic data on Friday cemented expectations the Fed could distance itself still further from any more interest rate hikes when its policy-making council meets this week. That sent U.S. bond yields down to 10-week lows.
Yields on the benchmark 10-year note were at 2.59%, after going as low as 2.580% earlier, the lowest since Jan. 4.
-- Reuters contributed to this report