Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Manufacturing, Services Data, Fed Minutes Eyed
While geopolitical uncertainty continues to dominate direction, the release of the Federal Reserve May meeting minutes and a slew of economic data is also expected to draw a reaction in markets.
The Manufacturing Purchasing Managers' Index (PMI) at 9:45AM ET is expected show a preliminary reading of 56.6 for May, while the Services PMI is expected to show a reading for 54.9.
The Commerce Department report on new home sales at 10:00AM ET is forecast to show a 2% decline to 680,000 units in March from 694,000 units in April.
The Federal Reserve releases the minutes of its May meeting due at 2:00PM ET. Traders are expected to parse the minutes for signs that policymakers could be turning more hawkish on monetary policy tightening as inflation inches closer to the central bank's 2% target.
The dollar traded roughly unchanged on Tuesday against a major basket of currencies after bouncing off session lows supported by a fall in EUR/USD and GBP/USD.
2. US Crude Supplies to Fall for Third-Straight Week?
Inventory data from the Energy Information Administration (EIA) on Wednesday is expected to show a third-straight weekly draw in U.S. crude stockpiles.
Analysts forecast crude inventories fell by about 1.567 million barrels in the week ended May 19.
The prospect of global supply disruptions amid looming sanctions on Iran and falling Venezuelan crude output continued to support oil prices.
Crude oil futures settled 11 cents lower at $72.13 a barrel.
3. Geopolitical Uncertainty in Focus
U.S. stock markets sold off sharply on Wednesday as geopolitical uncertainty attracted a fresh wave of selling after President Donald Trump on Tuesday said he was not pleased with recent U.S.-China trade talks that took place last week and also raised doubts about whether the U.S.-North Korea summit would take place.
Reports that Trump would seek to cut 10% of EU steel exports to the United States also added to trade war fears amid expectations a EU-U.S. trade war would be far reaching expanding over multiple industries.
Germany’s economy minister Peter Altmaier warned a trade war with the US would not only be limited to steel and aluminium but to other categories of products like cars, textiles and food, according to the Financial Times.
The Dow Jones Industrial Average fell 178.88 points, or 0.72%, to close at 24,834.41.