ORLANDO, Florida, March 16 (Reuters) - Wall Street

notched solid gains on Monday led by tech, while the dollar and

bond yields fell, as volatile oil prices eventually settled

lower on the bet - perhaps more in hope than expectation - that

the supply crunch from the Middle East could soon ease.

More on that below. In my column today I look at the

historic week in monetary policy now underway, the first week

since 2021 that the 'G4' central banks are meeting, and only the

second ever. The global rate repricing since war broke out in

the Middle East has been aggressive. Too aggressive?

If you have more time to read, here are a few articles I

recommend to help you make sense of what happened in markets

today.

1. US allies rebuff Trump's request for support in

Strait of Hormuz

2. Fed to present an updated outlook looking through the

fog of war

3. Trump-Xi meeting not in jeopardy but could be

delayed, White House says

4. Nvidia ( NVDA ) CEO Huang sees at least $1 trillion of AI chip

revenue opportunity through 2027

5. Cuba's national electric grid collapses, leaving

millions without power

Today's Key Market Moves

* STOCKS: Asia mixed: South Korea +1.7%, Japan -0.5%.

Europe +0.5%, solid gains on Wall Street. S&P 500 +1%, Nasdaq

+1.2%.

* SECTORS/SHARES: All 11 sectors in the S&P 500 rise.

Tech +1.4%, consumer discretionaries +1.3% Meta +2.2%, Nvidia ( NVDA )

+1.6%.

* FX: Dollar index -0.6%, biggest fall in a month.

Aussie, Kiwi dollars biggest G10 gainers, both +1.4%. Brazil,

South Africa, Mexico FX +1.5%, bitcoin +4%.

* BONDS: U.S. yields fall as much as 7 bps, curve bull

flattens slightly. Fed rate cut by year-end fully priced again.

* COMMODITIES/METALS: Oil down 3%-5%, gold flat but

platinum and palladium +4%. Average U.S. gas $3.72/gallon, +27%

in past month.

Today's Talking Points

* Trump calls on "allies"

Several traditional U.S. allies have said they have no plans

to assist the U.S. in trying to re-open the Strait of Hormuz,

which would get tankers moving again and help lower the price of

oil. A number of countries including Germany, Italy and Spain,

have rebuffed President Trump's call for help.

German Chancellor Friedrich Merz said there is no mandate

from the UN, EU or NATO, adding that Washington didn't consult

Germany before launching the war. Earlier this year, Trump

alienated European and NATO allies by threatening to take

Greenland. Relations are strained, and cooperation will require

a lot more negotiation.

* Dollar and global rate reprice

The dollar had its biggest fall in over a month on Monday,

dragged down by sliding Treasury yields and U.S. rates traders

moving back to fully pricing in a Fed rate cut by year-end. Its

losses against the Aussie and kiwi dollars were particularly

large.

Don't be surprised, however, if these dynamics quickly

reverse and FX volatility stays elevated this week, as the Fed

and seven other G10 central banks meet. First up is the RBA on

Tuesday. Even if none or just the RBA changes rates, that's a

lot of guidance and signaling for markets to digest.

* U.S.-China ties under spotlight

U.S. Treasury Secretary Scott Bessent and Chinese Vice

Premier He Lifeng have led 'candid and constructive' talks in

Paris, laying out possible 'deliverables' for Presidents Trump

and Xi Jinping at their summit in Beijing scheduled for March

31-April 2.

Whether that summit takes place when planned is now in

doubt, after Bessent and the White House said it might be

postponed if Trump needs to stay in Washington to prosecute the

war on Iran. The summit is two weeks away. It could be a very

long two weeks.

What could move markets tomorrow?

* Developments in the Middle East

* Energy market moves

* Australia interest rate decision, Governor Michele

Bullock holds press conference

* Indonesia interest rate decision

* Germany ZEW investor sentiment index (March)

* U.S. pending home sales (February)

* U.S. Treasury sells $13 billion of 20-year bonds at

auction

* U.S. Federal Reserve begins two-day policy meeting

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