Energy sector rebounded as International Energy Agency said that oil prices may have bottomed out.
United States
The S&P 500 and Dow Jones Industrials rose sharply to close at their 2016 highs on Friday. All three of the major indices also posted their fourth straight weekly gain in a rally that was largely fueled by a rebound in oil prices. The S&P 500 rose 1.6% and recorded a 1.1% gain over the week. The Dow Jones Industrial Average gained 1.3% and rose 1.1% over the week. The Nasdaq Composite advanced 1.9%, and recorded a 0.7% weekly gain.
Oil futures rebounded from losses in the previous session and gained 7% over the week. Stocks gained following comments from the International Energy Agency that prices might have bottomed out. Against this backdrop, shares of Devon Energy and Southwestern Energy rallied strongly.
Elsewhere, shares in Shares of Pepco Holding slid after a consumer advocate urged that the utility’s proposed acquisition by Exelon should be rejected by regulators.
Aside from oil, investors will be watching the Federal Reserve as it convenes its two-day Federal Open Market Committee meeting starting on Tuesday. Although the possibility of an interest-rate hike is low, investors will look for clues about the pace and timing of future interest rate moves and the central bank’s outlook on the US and global economy.
Europe
European stocks advanced on Friday as investors bought bank shares as they viewed the European Central Bank’s stimulus measures as supportive for the financials sector. The Stoxx Europe 600 rose 2.6% and ended with a weekly gain of 0.1%, rising for a fourth straight week. Germany’s DAX 30 surged 3.5% on the day, but closed 2.3% lower. The UK’s FTSE 100 advanced 1.7% on the day, but fell 1% for the week, breaking a three-week winning streak.
On Thursday, the ECB launched four rounds of targeted longer-term refinancing operations, which means it will in effect pay banks to borrow. Consequently, bank stocks gained on Friday, with Spain’s Banco Popular Español, Italy’s UniCredit and Germany’s Deutsche Bank among the gainers. Elsewhere, ArcelorMittal’s shares gained strongly as the steel giant outlined the terms of a shareholder-approved $3 billion rights issue aimed at improving its finances.
Asia Pacific
Asian markets rose in early trading on Monday, extending a four-week rally ahead of key meetings by central banks in the US and Japan later this week.
Japan’s Nikkei Stock Average was up 2%, Hong Kong’s Hang Seng Index gained 0.8%, Australia’s S&P/ASX 200 rose 0.7% and South Korea’s Kospi was essentially flat.
In China, a surge in property shares boosted the Shanghai Composite Index by 1.5%. The gains came after the country’s largest developer, China Vanke said it would buy assets in Shenzhen Metro Group, which boosted sentiment toward the entire sector.
In Hong Kong, shares were up even after Moody’s Investors Service lowered the outlook on its long-term government debt to negative from stable, saying that increasing political linkages with China are likely to weigh on Hong Kong’s institutional strength.
Meanwhile, investors in the region are looking to the Federal Reserve’s meeting on March 15-16. The central bank is widely expected to hold off on interest-rate increases, although stronger US data means that interest rates can be raised later in the year. The Bank of Japan is also expected to keep its monetary policy unchanged after announcing a move to negative interest rates in late January.
Global Stock Markets

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*

The following indicators will be released this week…

 

Europe

 
 
 
 

March 14

EU

Industrial Production (monthly and yearly) (January)

March 15

EU

Employment Change (quarterly and yearly) (Q4)

March 16

EU

ECB Non-Monetary Policy Meeting

 
 

ECB President Draghi Speech

 

UK

Unemployment Rate (January)

 
 

Average Earnings (including and excluding bonus) (January)

 
 

2016 Annual Budget Announcement

March 17

EU

Balance of Trade (January)

 
 

Inflation Rate (yearly and monthly) (February)

 

UK

BoE Interest Rate Decision

 
 

MPC Meeting Minutes

March 18

EU

Wage Growth (yearly) (Q4)

Asia/Pacific

 
 

March 15

Australia

RBA Meeting Minutes

 

Japan

Bank of Japan Interest Rate Decision

 
 

Industrial Production (monthly and yearly) (January)

March 16

Australia

Westpac Leading Index (montly) (February)

March 17

Japan

Balance of Trade  (February)

 
 

Imports and Exports (yearly) (February)

 
 

BoJ Gov Kuroda Speech

March 18

China

House Price Index (yearly) (February)

 

Japan

BOJ Monthly Report

Americas

 
 

March 15

United States

Core Producer Prices (monthly and yearly) (February)

 
 

Retail Sales (monthly and yearly) (February

 
 

NAHB Housing Market Index (March)

March 16

United States

Core Inflation Rate (monthly and yearly) (February)

 
 

Housing Starts and Building Permits (February)

 
 

Inflation Rate (monthly and yearly) (February)

 
 

Industrial Production (monthly and yearly) (February)

 
 

Fed Interest Rate Decision

 
 

FOMC Economic Projections

March 17

United States

Fed Press Conference

 

 

Jobless data

 

 

Philadelphia Fed Manufacturing Index (March)

 
 
 
 
 

 
*Note — all releases are listed in local time.

Source: Fidelity

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Jesmond Mizzi Financial Advisors Disclaimer:

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