Investing.com - Here's a preview of the top 3 things that could rock markets tomorrow.
1. Tariff Tensions in Focus
U.S. President Donald Trump will decide later Thursday whether to move ahead with tariffs on $50 billion worth of Chinese imports on Friday.
If the U.S. does move ahead with the tariffs it raises the risk of retaliation from the Beijing, sparking fears of a tit-for-tat trade war between the world's largest two economies.
But the list of imported goods – subject to a levy – was revised lower from the original list in April, according to media reports.
The list is expected to include between 800 and 900 products, well below the original list of about 1,300 products published by the U.S. Trade Representative in April, CNBC reported, citing three sources familiar with the matter.
The tariffs would raise the prospect of a global trade war as the United States' other trading partners such as the EU and Canada have recently vowed to retaliate with countermeasures to the U.S.'s tariffs on imported steel and aluminium.
The Dow Jones Industrial Average closed modestly lower at 25,175.31
2. Consumer Sentiment, New York Manufacturing Data Eyed
A regional U.S. manufacturing report and consumer sentiment data will round off this week's release of top-tier economic data.
Michigan’s consumer expectations Index due 10:00 am ET, is expected to show a preliminary reading of 89.7 for June, while consumer sentiment is forecast to show a preliminary reading of 98.5 for June, up from a reading of 98 last month.
The New York Fed’s Empire State manufacturing index at 08:30am ET – a gauge of New York-area manufacturing – is expected to show a drop in June compared to the previous month.
The duo of reports could further strengthen the narrative of a strong U.S. economy, which Fed chair Powell said was in "great shape" during a press conference earlier this week.
The dollar rose to two-week highs Thursday as EUR/USD tumbled following the European Central Bank's announcement that it would leave interest rates unchanged until at least the summer of 2019.
3. US Rig Count on Tap
The weekly instalment of drilling activity from Baker Hughes on Friday, will provide investors with clues on U.S. oil production, which rose to a record high.
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 10.9 million bpd, the Energy Information Administration said Wednesday.
Crude prices rose on Thursday on comments from Saudi's oil chief, insisting that the inevitable increase in production would be reasonable.
Crude futures settled 25 cents higher at $66.89 a barrel on Thursday.