Investing.com - Here’s a preview of the top 3 things that could rock markets
1. Producer Inflation to Revive Rate-Hike Expectations?
A report on wholesale inflation will warrant close attention as it is due a day ahead of the consumer inflation report slated for Wednesday.
Inflation growth at the wholesale level as measured by the producer price index is expected to have cooled to 0.1% in March from 0.2% in the prior month.
The report comes just days after Federal Reserve chair Jerome Powell on Friday continued to advocate for a gradual pace of Fed rate, citing expectations for inflation returning to target over time.
An above forecast reading could further cement expectations the Federal Reserve will raise rates at its June meeting and possibly add a fourth rate hike to its projections.
According to Investing.com’s Fed rate monitor tool, more than 80% of traders expect the Federal Reserve to raise rates in June.
The dollar fell against a major basket of currencies weighed by a rise in the loonie amid signs of progress on North American Free Trade Association (NAFTA) negotiations and an uptick in expectations that the Bank of Canada could raise rates again this year.
2. API Data, EIA Short-Term Energy Outlook Report on Tap
Traders look ahead to a fresh batch of crude oil inventory data from the American Petroleum Institute (API) due Tuesday after data last week showed crude inventories fell sharply.
The American Petroleum Institute reported last Tuesday crude oil stockpiles fell by 3.280 million barrels.
Traders will also await the Energy Information Administration’s short-term energy outlook report Tuesday, a day ahead of its weekly supply totals data due Wednesday.
In the previous report the Energy Information Administration (EIA) estimated that U.S. crude oil production averaged 10.3 million barrels per day (bpd) in February, up 230,000 bpd from the January level.
Crude oil futures made a positive start to the week settling more than 2% higher at $63.42 as easing trade-war fears, encouraged traders to pile into riskier assets.
3. Facebook’s Zuckerberg in Focus
Facebook will be closely watched on Tuesday as CEO, Mark Zuckerberg, gets his two-day Congressional hearing on the Cambridge Analytica scandal underway.
Facebook gave up some gains late Monday after Zuckerberg warned – in his prepared testimony to Congress – investment in security will have a significant impact on the social company’s profitability.
"I've directed our teams to invest so much in security – on top of the other investments we're making - that it will significantly impact our profitability going forward,” Zuckerberg said.
The ramp up in security investment comes as Facebook attempts to clean up its somewhat battered public image following the Cambridge Analytica scandal, which is said to have affected as many as 87 million users.
Zuckerberg also said Monday in a Facebook blog post that the company will create an independent commission to study the effects of social media on elections.
Facebook Inc (NASDAQ:FB) closed at $157.93, up just 0.46%, after hitting an intraday high of $160.53.
The broader market also pared gains on Monday following a New York Times report that the F.B.I. on Monday raided the office of President Trump’s personal lawyer, Michael D. Cohen, seizing records related to several topics including payments to a pornographic-film actress Stephanie Clifford, who said she had an affair with Mr. Trump.