Investing.com – Here’s a preview of the top 3 things that could rock markets tomorrow
1. Fed Bostic, Housing Data, Durable Goods on Tap
Following Wednesday’s Federal Reserve rate hike, investors will turn to a speech by Atlanta Fed President Raphael Bostic for additional clues on the prospect of further monetary policy tightening later in the year. While housing and durable goods data are also slated for Friday.
A speech by Fed President Raphael Bostic is slated 8:10 a.m. ET.
New home sales and durable goods data, however, is expected to garner most attention after both economic measures suffered an unexpected slump in January.
The Commerce Department is expected to report core durable goods orders rebounded 0.5% in February, from a 0.3% slump in the prior month.
In separate report, the Commerce Department is slated to report new home sales for February rose 4.4% to 623,000 units from 593,000 units in January.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.12% to 89.39.
2. This Means (Trade) War
Investor fears over the prospect of a U.S. trade war was played out in the major U.S. averages Thursday as the Dow slumped more than 700 points.
President Donald Trump unveiled tariffs on about $50 billion worth of Chinese exports, citing China’s unfair seizure of US intellectual property.
That overshadowed reports confirming that the EU and six other countries will be exempted from U.S. tariffs on steel and aluminium imports as investors are braced for the prospect of retaliatory measures from China.
China reportedly readied plans to hit back with media reports suggesting that China could target agricultural goods important to rural U.S. regions that tend to support Donald Trump.
Boeing (NYSE:BA) fell more than 3% as investor feared that China could ditch the U.S. aircraft maker for rival Airbus. While FedEx (NYSE:FDX) – with its large presence fell in China – fell 5.14% as investors fear it could be in China’s crosshairs.
3. Baker Hughes Rig Count In Focus
The weekly instalment of drilling activity from Baker Hughes on Friday, will provide investors with fresh insight into U.S. oil production and demand after the number of oil rigs operating in the US resumed their upward trend.
The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.
Crude futures gave back some their gains on Thursday, settling 2.3% lower at $64.30 a barrel. Sentiment on crude prices, however, remains positive as a rising geopolitical tensions stoked investor expectations that supply disruption could follow.
U.S., Iran tensions are front and centre after President Trump hinted at scrapping the Iran nuclear deal during a visit to the White House by Saudi Crown Prince Mohammad Bin Salman (or MBS as his called).
"A lot of bad things are happening in Iran," Trump said earlier this week. "The deal is coming up in one month, and you will see what happens."
“On May 12, the US government will need to decide on the renewal of the waiver of Iranian sanctions, Morgan Stanley said.” “Depending on the outcome, this could affect Iranian exports, including possibly taking a few hundred thousand barrels per day off the market.