Investing.com - Here are the top five things you need to know in financial markets on Wednesday, March 16:
1. All eyes on Fed, Yellen press conference
Investors looked ahead to the Federal Reserve’s decision due later in the day for fresh guidance on the future path of U.S. interest rates.
While the Fed is widely expected to leave interest rates unchanged at the conclusion of its policy meeting at 18:00GMT, or 2:00PM ET, Wednesday, the U.S. central bank could provide guidance on its pace of tightening over the next several months.
Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement. The central bank will also release its latest forecasts for economic growth and interest rates.
Market players expect at least one more rate hike this year, most likely in June, while the Fed’s updated forecasts could point to three more. In December, the Fed forecast four rate hikes in 2016.
2. Oil producers will meet in Qatar on April 17
OPEC and non-OPEC producers agreed to hold their next meeting on a plan to freeze output levels in Doha, Qatar on April 17, even without the attendance of Iran.
Brent rallied 80 cents, or 2.07%, at $39.54 a barrel, by 10:00GMT, or 6:00AM ET, while U.S. crude rose 78 cents, or 2.15%, to $37.12.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 14:30GMT, or 10:30AM ET, amid expectations for a gain of 3.4 million barrels.
3. U.S. data dump
Traders will digest a slew of U.S. economic data Wednesday while awaiting the conclusion of the Fed meeting. The highlight will be on February inflation data due at 12:30GMT, or 8:30AM ET. The consensus forecast is that the report will show consumer price inflation fell 0.2% last month, while core CPI is forecast to rise 0.2%.
At the same time, the U.S. will also publish data on February building permits and housing starts, followed by a report on industrial production for February at 13:15GMT, or 9:15AM ET.
4. U.K. labor market continues to improve
U.K. unemployment held at its lowest rate for a decade and wage growth ticked higher as the labor market continued to improve.
Wage growth including bonuses climbed to 2.1% in the three months through January, the Office for National Statistics said. Economists had forecast a pickup to 2.0% from 1.9% in the fourth quarter. The claimant count fell 18,000 leaving the jobless rate at 5.1%, the lowest since early 2006.
Later in the session, Chancellor George Osborne reports his annual borrowing and spending plans to the U.K. parliament, amid expectations for further cuts in public spending.
5. London Stock Exchange , Deutsche Boerse agree to mega merger
London Stock Exchange Group (LON:LSE) and Deutsche Boerse (DE:DB1Gn) on Wednesday agreed to an all-share merger, creating Europe’s biggest securities-markets operator worth more than $30 billion.
LSE Group Chairman Donald Brydon will be appointed chairman of the combined group, while Deutsche boss Carsten Kengeter will become CEO.