Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. Jobless Claims, Trade Data on Tap
Jobless claims data will provide investors with another clue on the health of the U.S. labor market – a day ahead of nonfarm payrolls – while trade data may draw added attention amid an ongoing U.S.-China trade spat.
The Labor Department releases its weekly count of the number of individuals who filed for unemployment insurance for the week ended March 31, expected to show jobless claims rose to 225,000 from 215,000 the prior week. Continuing jobless claims are forecast to rise to 1.849 million from 1.871 million the prior week.
The Commerce Department, meanwhile, is expected to report the trade gap widened to $56.90 billion in February from $56.60 billion in the prior month.
The U.S. trade deficit has garnered added investor attention in recent days as the U.S. announced tariffs to plug its trade gap with China and force the latter to make trade and investment concessions.
The U.S. trade gap expanded 5.0% from the prior month to a seasonally adjusted $56.60 billion in January, the Commerce Department said in March.
The dollar clawed back some of its losses against its rivals Wednesday, after easing trade-war fears weighed on the safe-haven yen, supporting a rebound in USD/JPY.
2. Natural Gas Inventories, Rebound in Crude Oil Prices in Focus
Natural gas prices rose slightly on Wednesday, as weather guidance remained mostly unchanged overnight with above-normal heating demand expected through next week.
The Energy Information Agency’s weekly natural gas storage report is expected show gas storage fell by 26 billion cubic feet last week.
Traders are also expected to monitor developments in crude markets on Wednesday after crude oil prices pared losses heading into settlement following a massive draw in crude supplies.
Crude futures fell 14 cents to settle at $63.37 a barrel after bouncing from a session low $62.08 a barrel.
3. Trade-War Fears Overblown?
U.S. stocks swung back from steep losses Wednesday as trade-war fears eased somewhat amid growing investor expectations the U.S. and China tariffs are simply a negotiation tactic as neither the U.S. nor the Chinese tariffs will take effect immediately.
The Chinese government did not specify when its 25% duties on 106 U.S. products would be imposed, opting to take a ‘wait and see’ approach as to how the U.S. will implement its proposed tariffs.
Some have suggested that the U.S. tariffs may only come into force at the end of May or early June as U.S. companies have until May 22 to raise objections, while a public hearing is scheduled for May 15.
This leaves plenty of time for the world’s two largest economies to reach an agreement on trade, averting a trade war.
Mizuho said Wednesday the US Treasury Department’s decision to extend the initial 30-day consultation period to 60 days was a sign that the “U.S. side has already left room for negotiation.”
The rebound in U.S. stock markets Wednesday certainty echoed this sentiment as the Dow Jones Industrial Average swung more than 600 points from session lows to end the day sharply higher.