Investing.com - Here's a preview of the top 3 things that could rock markets tomorrow.
1. All Eyes on Trump
U.S.-China trade hopes were given a lifeline Thursday on reports that both nations could announce a limited agreement on trade. News of a limited deal arrived just hours after Trump confirmed that he would meet with Chinese Vice Premier Liu He on Friday.
The agreement, however, will not end the trade war as it is unlikely to address Trump’s concerns on key points that have dogged trade talks for months such as China’s economic practices and policies that force U.S. firms – wanting to enter the Chinese market -- to team up with local partners.
But the limited deal is enough to persuade Trump to halt tariffs on Chinese goods that were set to go into effect on Oct. 15, potentially deescalating trade tensions between the world’s largest two economies.
With Trump seemingly set to orchestrate the trade talks on Friday, and hopes of a deal running high, U.S. government bonds will likely be in the spotlight again, after Treasury yields surged on Thursday. The 10-Year Treasury yield moved up to 1.661% Thursday from Wednesday's 1.587%.
The uptick in bond yields comes even as markets continue to price in a Fed rate cut at the of the month, with the odds of further easing now at about 80%, according to Investing.com’s Fed Rate Monitor Tool.
2. Consumer Confidence Check
Consumer confidence numbers will be in the spotlight tomorrow, with many the strength of the consumer will likely continue to keep the U.S. economy above water.
The University of Michigan releases its preliminary measure of October consumer confidence at 10:00 AM ET (14:00 GMT).
Consumer sentiment is expected to decline to a reading of 92, according to economists’ forecasts compiled by Investing.com.
The expectations component is forecast to drop to 81.7.
3. Rig Counts on Tap
The latest rig count data due Friday may take on added importance for clues on domestic crude production, which rose to record 12.6 million barrels a day last week.
Data last week showed the number of oil rigs operating in the U.S. fell by 3 to 710.
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 on Thursday settled 1.8% higher at $53.55 a barrel after OPEC suggested the door was open for further production cuts next year, with a decision expected to be made at oil-cartel’s meeting in December.