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Top 5 Things to Know In the Market on Monday

Published 2016-04-04, 05:59 a/m
© Reuters.  Monday's top 5 things to know in the market
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Here are the top five things you need to know in financial markets on Monday, April 4:

1. Oil rebounds off one-month lows

Oil turned around on Monday despite doubts over an eventual deal to freeze output.

On Friday, Saudi Deputy Crown Prince Mohammed bin Salman said the kingdom will not cap output unless Iran and other major producers do so, casting doubts over whether a highly awaited production freeze will happen.

Also on Friday, data from Baker Hughes showed that the number of active rigs drilling for crude in the U.S. fell by 10 to 362, its lowest level since November 2009. The active rig count acts as a leading indicator of demand for oil products.

The total U.S. rig count fell 14 to 450, which is another record low.

U.S. crude oil futures rose 0.27% to $36.89 at 9:54AM GMT or 5:54AM ET, while Brent oil traded up 0.62% to $38.91.

2. IMF denies threatening Greece over pulling out of bailout

Greece returned to the headlines after leaks over the weekend claimed that the International Monetary Fund (IMF) was threatening to push the Hellenic Republic towards default as a tactic in the latest round of the bailout agreement.

IMF chief Christine Lagarde categorized the accusation as “nonsense”, but did say that she believed a coherent program was still “a good distance away”.

3. Positive European unemployment data clashes with U.K. construction activity

The number of unemployed people in Spain fell for the first time in three months in March, easing concerns over the health of the euro zone’s fourth largest economy and surprising consensus expectations for an increase.

In the wider Eurozone, the unemployment rate for February fell to its lowest level since August 2011.

On the downside, activity in the U.K. construction sector did positively surprise by remaining stable in March.

However, February’s level was a 10-month low and David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply warned that the sector was “awash with caution and hesitancy not seen since the pre-election lull of 2015.”

4. U.S. factory orders and Fed speakers ahead

On a light calendar day stateside, investors will focus on the U.S. factory orders for February at 14:00GMT, or 10:00AM ET.

After Cleveland Federal Reserve president Loretta Mester said that the Fed should still raise interest rates gradually this year given the economy's resilience, traders will also watch for possible hints on U.S. central bank policy from two Fed speakers although neither is scheduled to speak on monetary policy.

Boston Fed president Eric Rosengren will give a presentation on cybersecurity and financial stability at 13:30GMT, or 9:30AM GMT.

Minneapolis Fed chief Neel Kashkari is scheduled to give a press briefing following a conference on too-big-to-fail at 21:15GMT, or 17:15ET.

5. Global stocks see mixed trade; Asia slips, but Europe and U.S. trade up

With Dow Jones Shanghai closed for a Chinese holiday, the Nikkei 225 closed down 0.25%, and the S&P/ASX All Australian 200 slipped 0.08%.

At 9:56AM GMT or 5:56AM ET, European stocks markets moved higher with the European benchmark Euro Stoxx 50 trading up 1.28%, the DAX gaining 0.95%, the CAC 40 advancing 1.05% and London's FTSE 100 adding 0.60%.

U.S. futures also reflected slight gains. Specifically, at 9:58AM GMT or 5:54AM ET, the blue-chip Dow futures rose 0.18%, S&P 500 futures added 0.23% and the Nasdaq 100 futures gained 0.27%.

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