Here's a preview of the top 3 things that could rock markets tomorrow.
1. Fed Minutes, Powell on Watch
The September Federal Open Market Committee meeting minutes and Fed Chairman Jerome Powell's participation in a Kansas City Fed event will likely be the main focus ahead of a widely-expected Fed rate cut later this month.
Powell’s speech at 11:00 AM ET (15:00 GMT) and the 2 p.m. ET release of the Fed’s minutes from its September meeting will be closely watched for clues into the central bank’s thinking.
In a Tuesday speech, Powell said the Fed is going to sell some short-term securities to shore up some funding issues in short-term debt markets. He also said the economy was growing nicely and not overheating.
In its September meeting, the FOMC delivered what many saw as a hawkish cut as the central bank signaled that it was unlikely to adopt a prolonged period of easing.
The odds of Fed rate cut have cooled recently, but remained high, with 77% of traders expecting a cut later this month, according to ’s Fed Rate Monitor Tool.
“We expect one more 25 basis point rate cut, most likely in October, as the FOMC navigates a U.S. economy that is slowing and facing elevated downside risks,” Nomura said in a recent note to clients.
2. Labor Market Data Due
Beyond monetary policy, labor market data will also garner attention following last week’s weaker-than-expected, but solid, employment report.
The Labor Department will release its August Job Openings and Labor Turnover Survey (JOLTs) at 10:00 AM ET (14:00 GMT).
On average, economists expect that job openings fell to 7.19 million in August from 7.22 million the prior month, according to forecasts compiled by .
3. Crude Inventories to Build for Fourth-Straight Week?
The Energy Information Administration (EIA) petroleum report, due Wednesday, will likely provide a timely distraction as crude prices have pressured by rising fears that U.S.-China trade talks set to start Thursday are unlikely to lead to meaningful progress.
The EIA is expected to report a build in crude stockpiles of 1.41 million barrels last week. That would mark the fourth-weekly build in crude stockpiles.
U.S. weekly production, which remains at a record of 12.4 million barrels a day, will likely also attract attention.
Crude oil futures settled down 0.2% to $52.63 a barrel on Tuesday and were at levels last seen in mid-August.
