Investing.com - Here's a preview of the top 3 things that could rock markets tomorrow.
1. G7 Summit in Focus
A week after the United States' tariff on steel and aluminium imports from Canada, Mexico and the European Union went into effect, trade tensions could escalate at the G7 summit, which gets underway on Friday.
Ahead of the summit, President Trump has not softened his tone, vowing to "fight" for the United States, as the country has the "worst trade deals ever."
Trump is expected to receive a tough reception from other G7 members as French President Emmanuel Macron urged other members to confront Trump's trade policies.
Following the U.S. tariffs, the European Commission's president, Jean-Claude Juncker, said last week that Europe would respond with countermeasures.
Some fear that the failure for members to find common ground on trade issues at the meeting, which will include leaders from the U.S., the U.K., Canada, Japan, Italy, Germany and France, would raise the prospect of a full-blown trade war, hurting risk sentiment.
The Dow Jones rallied Thursday as a jump in shares of oil-and-gas companies – following an uptick in oil prices – offset selling across tech stocks.
2. Wholesale Inventories, Trade Sales Data on Tap
A duo of U.S. economic reports is not expected to garner much attention Friday as investors prepare for a widely expected U.S. interest rate hike next week, when the Federal Reserve concludes its two-day meeting June 13.
Wholesale inventories growth data for April due 10am ET is expected to remain flat at 0.0%, while wholesale trade sales data are also expected at 10am ET.
Ahead of the data, the U.S. dollar slipped against its rivals as the euro added to gains on expectations the European Central Bank would announce an end date to its bond-buying programme next week.
The release of Canada employment change data at 8:30am ET will also be in focus as it could trigger a large reaction in USD/CAD.
3. US Rig Count to Continue Climb?
The weekly instalment of drilling activity from Baker Hughes on Friday, will provide investors with fresh insight into U.S. oil production and demand as investors continue to fret the rapid pace of U.S. output.
Data last week showed the number of U.S. oil rigs continued their climb, raising the prospect of a continued expansion in U.S. output.
U.S. oil output jumped to a record 10.8 million bpd, the Energy Information Administration said Wednesday.
Crude prices rose Thursday as investors cheered comments from OPEC members downplaying the prospect of the oil-cartel easing production curbs at its meeting due June 22.
Crude futures settled 1.9% higher at $65.95 a barrel on Thursday.