Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Day Ahead: Top 3 Things to Watch

Published 12/11/2018, 03:33 PM
Updated 12/11/2018, 04:36 PM
© Reuters.

© Reuters.

Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.

1. Retail Inflation Data Released

Core producer price inflation came in hotter than expected today and tomorrow will bring the retail numbers. Investors will be keeping a keen eye on them ahead of next week’s Federal Reserve interest rate decision, which isn’t a foregone conclusion.

The Labor Department will issue the November consumer price index (CPI) at 8:30 AM ET (13:30 GMT).

Currently, economists are predicting that the CPI stayed flat last month. The core CPI, which excludes food and energy prices and is watched more closely by the Fed, is expected to have risen by 0.2%.

Both measures are forecast to be up 2.2% for the 12 months through November.

2. Tencent Music’s $1 Billion IPO on Tap

China and the U.S. will be in headlines for trade tomorrow, of course, but also for the IPO market.

Tencent Music Entertainment Group, China’s largest music-streaming service, is expected to go public in a deal worth more than $1 billion on the Nasdaq.

The company plans to price 82 million shares between $13 and $15 per share tonight.

At the midpoint of $14, Tencent would raise $1.148 billion.

The IPO was set to happen in October but was delayed because of the market selloff.

The company was anxious to debut on Wall Street this year in case trade tensions between the U.S. and China worsened, Reuters reported, citing a source.

The group will trade under the symbol TME.

3. Another Drop Expected in U.S. Oil Inventories

Crude oil inventory numbers will be the highlight of energy trading tomorrow.

The Energy Information Administration (EIA) will release the latest weekly numbers at 10:30 AM ET (15:30 GMT).

Traders are currently expecting a drawdown of around 3 million barrels, narrower than the big draw of more than 7 million barrels the week before.

U.S. crude output has become a main driver of oil prices, with speculation that increased supply from the States will overwhelm any production cuts from OPEC and Russia.

The EIA's Short-Term Energy Outlook put U.S. output for next year at a record high 12.1 million bpd on the average, versus the average of 10.9 million expected this year. The net increase of 1.2 million bpd would essentially account for all the supply OPEC and its allies planned to cut next year to shore prices up.

"If true, there goes your bullish story for oil from these cuts," said John Kilduff, partner at New York energy hedge fund Again Capital.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.