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Day Ahead: Top 3 Things to Watch

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

1. Rebound in Existing Home Sales Predicted

With the Federal Reserve giving the market some pause over the state of the economy, tomorrow’s housing data will be closely watched, given that’s been the weakest sector.

The National Association of Realtors will report on February existing home sales at 10:00 AM ET (14:00 GMT).

On average, economists expect that sales of existing homes rebounded in February, rising 2.2% to an annual rate of 5.1 million.

Also on the calendar, Markit will issue preliminary purchasing managers indexes (PMIs) for manufacturing and services at 9:45 AM ET.

The manufacturing PMI is expected to edge up to 53.5, while the services PMI is seen ticking down to 55.7.

2. Tiffany, PetroChina to Report

Two stocks will report earnings on Friday that bear watching.

Tiffany (NYSE:TIF), the upscale merchant of jewelry, will report before the market opens.

The company is expected to earn $1.60 a share in the fiscal-fourth quarter, down from $1.67 a share a year ago, according to analysts polled by Investing.com. Revenue is forecast at $1.34 billion, up 0.75% from a year ago.

Investors seem cheery about the company. The stock rose 3.1% today and is up 24.3% this year. But it is still 29.4% below its all-time high of $141.64 reached last summer.

Also, PetroChina (NYSE:PTR), the big Chinese oil-and-gas producer, reports before the open.

The company is expected to report earnings of 51 cents per American depositary unit, up from 47 cents a year ago. Revenue is projected at $87.8 billion, down slightly from a year ago’s $88.3 billion.

3. GBP/USD Defends $1.30, but for How Long?

GBP/USD showed some resolve late Thursday as it defended the $1.30 handle after a sharp spiral lower amid uncertainty over whether Britain would be able meet the terms laid out by the EU for an extension to Brexit.

A leaked draft of the European Council's conclusion on Brexit said the EU would grant the U.K. an extension to Brexit until May 22 if lawmakers vote for the withdrawal deal next week.

But that appears easier said than done. EU members are not open to renegotiating the withdrawal deal, the leaked conclusion noted.

U.K. lawmakers have rejected Prime Minister Theresa May's deal twice. And with little hope that May will be able to secure meaningful changes to the deal from the EU, there's every possibility it will suffer another defeat in parliament.

Despite Britain's fate of securing a trade deal seemingly hanging in the balance, some analysts believe that cooler heads will eventually prevail as an extension is good for both the U.K and EU.

"(A)t the crunch point though it should favor both sides choosing a longer extension rather than a no-deal Brexit which would then allow the pound to rebound," MUFG said.

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