Investing.com – Here’s a preview of the top 3 things that could rock markets tomorrow
1. US macro data
Building permits, housing starts and a raft of University of Michigan data will round off the week of top-tier US economic data on Friday as US investors gear up for a holiday weekend which usually sees trading volumes drop from normal levels.
The Commerce Department is expected report building permits fell to a seasonally adjusted annual rate of 1.290 million units, while housing starts are expected to show increase to 1.234 million units.
The University of Michigan’s consumer sentiment index, is expected to show consumer confidence in the economy remained bullish, as economist forecast the index to show a reading of 95.4 for February compared to 95.7 in the previous month.
The index serves a barometer of consumer confidence in the economy; a rising sentiment index points to signs of an uptick in increased consumer spending and thus economic growth.
Michigan’s consumer expectations are expected to show a reading of 84.5 for February, while current conditions are forecast to rebound to a reading of 112 in February from 110.5 in the previous month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.44% to 88.53
2. UK Retail Sales
The uptick in the pace of UK wage growth is expected to boost domestic retail sales. Economists forecast UK retail sales rose 0.5% in January, which would mark a return to growth following a 1.5% fall in December.
A stronger retail sales print could strengthen the Bank of England’s case to raise rates sooner rather than later after BOE governor Mark Carney, during the most recent BOE meeting, said that the central bank may have to raise rates faster and sooner than anticipated.
GBP/USD rose 0.69% to $1.4093.
3. Baker Hughes rig count
The weekly instalment of drilling activity from Baker Hughes on Friday, will provide investors with fresh insight into U.S. oil production and demand after data last week showed the number of oil rigs operating in the US rose by 26 to 791, the highest level since April 2, 2015.
The weekly rig count is an important barometer for the drilling industry and serves as a proxy for oil production and oil services demand.
Crude futures settled lower on Thursday as traders mulled over recent data showing US oil producers ramped up production while a drop in refinery activity is expected to add to domestic crude supply totals in the weeks to come.