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The Day Ahead: Top 3 things to watch

Published 08/29/2017, 05:33 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

Top-tier US economic data on tap

Investors are expected to carefully parse ADP nonfarm employment data due Wednesday, which often serves as a precursor to monthly nonfarm payrolls data slated for later this week.

Economist forecasts private sector job creation grew to 185,000 in August from 178,000 in the prior month.

The ADP report will be released ahead of the second preliminary reading of gross domestic product, widely predicted to show a slight improvement on the prior reading.

Economists’ forecast the U.S. economy grew at an annualised rate of 2.7% in the second quarter.

Ahead of the duo of reports the dollar, has struggled to pare gains against its rivals, dropping to 2 ½ year lows amid an uptick in demand for safe-haven currencies like the yen and Swiss franc, following North Korea’s decision to fire a missile that flew over northern Japan on Monday.

China macro data on tap

China is slated to release a pair of reports on manufacturing and non-manufacturing activity which could provide further clues about the health of the world’s second largest economy.

The manufacturing purchase managers index (PMI) for August is expected to remain steady 51.3 from a reading of 51.4 in July.

Meanwhile, non-manufacturing activity will be closely monitored to gauge the country’s transition from a manufacturing-based economy to a service-based economy.

Economists’ expect non-manufacturing PMI to show a reading of 54.5.

A reading above 50 indicates expansion in the sector; below 50 indicates contraction.

U.S. crude oil stockpiles to show ninth-straight weekly decline?

A fresh batch of inventory data from the Energy Information Administration (EIA) on Wednesday is expected to show that U.S. crude stockpiles fell for a ninth-straight week.

Analysts forecast crude inventories fell by about 1.9m barrels in the week ended Aug 25.

Crude futures have started the week on the back foot, falling to a five-week low, amid concerns that flooding caused by Storm Harvey may dampened refinery activity, leading to an uptick in crude supplies, the primary input at refiners.

Crude oil settled $0.33 lower at $46.44 on Tuesday.

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