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Day Ahead - Top 3 Things to Watch

Published 11/07/2019, 19:38
Updated 11/07/2019, 21:22
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Investing.com -- Here's the three things that could rock markets tomorrow.

Wholesale Inflation on Tap

Wholesale inflation figures arrive Friday, a day after U.S. consumer prices topped economists’ expectations.

The Labor Department will issue the June producer price index (PPI) report at 8:30 AM ET (12:30 GMT). On average, economists expect that the PPI rose 0.1% last month with the core PPI, which excludes volatile food and energy prices, rising 0.2%, according to forecasts compiled by Investing.com.

That would bring year-over-year PPI growth to 1.6% and core PPI growth up 2.2%.

The PPI is considered a leading indicator, measuring the input prices for goods sold at a retail level.

Rig Counts on Tap

The weekly installment of drilling activity from Baker Hughes on Friday will provide investors with clues on U.S. oil production, which remains a notch above record highs.

Data last week showed the number of oil rigs operating in the US rose fell by 5 to 788.

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 on Thursday settled 23 cents lower, or 0.4%, at $60.20 a barrel, as OPEC's forecast for slower crude demand next year exacerbated fears of a surplus in crude supplies, which would weigh on oil prices.

China Trade Data in Focus

Traders will look to China’s June trade data for clues about the health of the world’s second largest economy, with both exports and imports forecast to show a decline.

China’s exports are expected to have declined by 2.0% year-on-year, from 1.1% rise in May, while the decline in imports is forecast to have slowed to 4.5% following an 8.5% slump in May.

The faster fall in imports than exports is expected to widen the country’s trade surplus.

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