Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. US GDP, Housing Data To Help Markets Rebound?
As markets enter the final day of month, investors remain hopeful that a duo of reports on housing and economic growth will restore positive sentiment on riskier assets after US stocks slumped as Fed chair Jerome Powell’s upbeat comments raised the prospect of a fourth rate hike.
The penultimate reading of fourth-quarter US GDP is expected to show the rate of economic growth slowed to 2.5%, down from the previous reading of 2.6%.
Pending Home Sales, meanwhile, is forecast to show 0.3% growth for January following a 0.5% rise in the prior month. The supply crisis is expected to continue to weigh on housing as listings struggle to keep up with strong demand driven by wage growth and the prospect of higher mortgage rates.
The dollar traded sharply higher against its rivals on Tuesday, as the greenback enjoyed renewed demand thanks to growing expectations for four rate hikes in 2018.
2. Crude Supplies To Post Surprise Draw, Again?
A fresh batch of inventory data from the Energy Information Administration (EIA) on Wednesday is expected to show that U.S. crude stockpiles rose last week.
Analysts forecast crude inventories rose by about 2.07 million barrels in the week ended Feb 23. Yet, last week crude supplies unexpectedly fell despite expectations for a build as the price difference between Brent and crude widened fuelling foreign demand buying of US crude which helped slash stockpiles.
Crude oil futures settled lower on Tuesday amid investor fears that US output may continue to surge beyond 2018.
3. Eurozone Inflation in Focus
The Eurozone releases its preliminary consumer price index (CPI) reading for February on Wednesday. A stronger-than-expected CPI print could pressure the European Central Bank to consider the prospect of reining in accommodative monetary policy.
The first step of which could be a wind down of bond purchases, according to Bundesbank President Jens Weidmann. The Bundesbank president said Tuesday there is “no reason why the Governing Council should not end the net purchases of securities this year,” should economic growth and inflation continue to rise.
Economists forecast Eurozone inflation of 1.2% annual rate through February compared to 1.3% in the prior month. Core CPI, which excludes food and energy prices, is expected to remained unchanged at an annual rate of 1%.
Inflation has lagged the European Central Bank’s target of below, but close to, 2%.
EUR/USD fell 0.70% to $1.2231.