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The Day Ahead: Top 3 things to watch

Published 08/07/2017, 04:43 PM
© Reuters.  What to watch our for in tomorrow's session
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Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow

Final day of Opec and non-Opec meeting

A two-day meeting of Opec and non-Opec producers got underway Monday, as the major oil producers seek to reaffirm their commitment to increase compliance with the deal to curb production.

Crude futures are likely to remained volatile, as traders await the outcome of the meeting amid a dip in sentiment on oil prices after data showed U.S. output hit a two-week high last week.

U.S. weekly oil production hit 9.43 million bpd in the week to July 28, the highest since August 2015 and up 12% from its most recent low in June last year.

China macro data on tap

Gold futures could be the one to watch on Tuesday, as market participants look ahead to the release of economic reports on China, which may offer further guidance on the strength of the world’s second largest economy.

Trade data for July is expected to show a dip in both imports and exports while the trade balance is forecast to show modest growth to $46.08bn, up from $42.77bn in June.

The trade data comes ahead of inflation data due Wednesday, with analysts expecting the data to show China carried solid momentum into the third quarter after a strong first half of the year.

Walt Disney earnings in the spotlight

Walt Disney Company (NYSE:DIS) will announce its fiscal third-quarter results on Tuesday, after U.S. markets close. Investors are bracing for weak corporate earnings in the wake of concerns about dwindling sales and profit growth.

Top-line growth at ESPN, part of Disney’s media and network segment, is likely to come under intense security, as pay-tv subscribers continue to abandon their cable TV for less expensive options from streaming service providers.

The company’s park and resorts segment, however, is expected to continue to contribute to gains, after the division added over $600 million, or 8%, in revenue over the past six months. The performance of the company’s U.S. theme parks, in particular, will be of much interest as competition tends to increase over the peak summer months.

Wall Street estimates Walt Disney to post earnings of $1.55 per share on $14.46 billion in revenue.

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