Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Manufacturing Data, Geopolitics on Tap
U.S. stocks made a bullish start to the week as traders cheered signs of easing U.S.-China trade tensions. Geopolitical uncertainty may continue to garner investor attention as the U.S. economic calendar is light with a regional manufacturing report slated for Tuesday.
The Richmond Fed manufacturing index for May is expected to show reading of 9, bouncing back from the -3 reading for March.
The data comes ahead of Wednesday's release of the minutes for the Federal Reserve’s May meeting, in which the bank signalled inflation was edging toward its target of 2%, raising investor expectations for additional rate hikes.
Two regional manufacturing surveys released last week indicated rising input costs were beginning to find their way to consumers, raising the prospect of steeper inflation, renewing expectations for a faster pace of rate hikes.
The odds of a fourth rate inched higher to over 40% in recent weeks, according to Investing.com’s Fed Rate Monitor Tool.
Philadelphia Fed President Patrick Harker said on Monday, the Fed should hike interest rates two or possibly three more times this year.
The dollar traded roughly unchanged against a basket of major currencies on Monday, easing from a fresh five-month high after the EUR/USD clawed back losses.
2. API Data, Fall Out From US Sanctions on Venezuela Eyed
A fresh batch of crude oil inventory data from the American Petroleum Institute (API) is due Tuesday after data last week showed a rise in weekly crude U.S. crude stockpiles.
The American Petroleum Institute reported last Tuesday crude oil stockpiles rose by 4.854 million barrels. That was in sharp contrast to the Energy Information Administration report showing crude supplies fell by 1.404 million barrels.
Oil prices made a positive start to the week after the United States toughened its stance on Iran, claiming the country would face the strongest restrictions in history.
While Venezuela’s oil production woes are set to face further headwinds after the U.S. unveiled fresh sanctions on the country following the re-election of President Nicolas Maduro.
Crude oil futures on Monday settled 1.4% higher at $72.24 a barrel.
3. Netflix All-Time High in Focus
Netflix closed near all-time highs on Monday after revealing that former U.S. President Barack Obama and First Lady Michelle Obama signed a multiyear agreement to produce films and series for Netflix.
The streaming giant said the Obamas would provide a diverse mix of content including films and series, docu-series, documentaries and features.
While financial terms of the deal were not disclosed, some said the content would be appealing to many of Netflix’s 125 million members.
Netflix Inc (NASDAQ:NFLX) closed at $331.82, just shy of its all-time high of 338.82.