Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow
1. U.S. Housing Data, U.S. China Trade Spat in Focus
With the U.S.-China trade spat garnering the bulk of investor attention, an update on the U.S. housing market could prove a timely distraction.
The Commerce Department at 08:30 ET is expected to report building permits fell to a seasonally adjusted annual rate of 1.350 million units, while housing starts are forecast to rise 1.4% to 1.310 million units.
A speech by Fed official James Bullard at 7:00AM ET is expected to be scrutinised for further signs U.S. central bank members remain hawkish on monetary policy tightening following the Fed's rate hike last week.
Shares of Boeing Co (NYSE:BA) will likely also also be in focus after the aircraft maker added to last week's slump – the worst since March – on worries over an escalating trade war with China.
China is one Boeing biggest customers - one out of every four Boeing jetliners produced is reportedly delivered to Chinese customers.
The dollar made a subdued start to the week as trade tensions fuelled demand for safe-haven currencies like the USD/JPY and USD/CHF.
2. API Data Eyed Ahead of OPEC Meeting
A fresh batch of crude oil inventory data from the American Petroleum Institute (API) due Tuesday will be monitored to establish whether the draw in U.S. crude inventories can continue for the second straight week.
The American Petroleum Institute reported last Tuesday crude oil stockpiles rose by 0.833 million barrels. That was in sharp contrast to the Energy Information Administration's report showing crude supplies fell by 2.101 million barrels.
Oil prices were in rebound mode on Monday amid a report that OPEC was considering a modest output hike to placate both Russia's demands for a large increase in production and Iran's view that output curbs should remain in place.
Crude oil futures on Monday settled 1.30% higher at $65.69 a barrel.
3. Bitcoin Bounce Nears Key Test
Bitcoin sprung to life in late afternoon U.S trade, hitting a nearly one week high amid a report Square (NYSE:SQ)'s Cash app was approved for crypto trading.
New York's Department of Financial Services Monday granted a virtual currency license, or so-called BitLicense, to Square's Cash app, allowing users to buy and sell bitcoin instantly.
Bitcoin (BitfinexUSD) rose 3.18% to $6,706 on the Bitfinex exchange and looked set for test for a test of $7,800, which some crypto observers have recently identified as resistance – price levels that trigger selling. A significant push above this level could trigger further fund inflows, supporting a move higher in the popular crypto.
The total market cap of cryptocurrencies rose to about $287 billion, at the time of writing, from about $268 billion last week.