An interesting week ahead kicking off with the market reaction to the G-20 meeting in Argentina. Trump stole the headlines here yet again, announcing that China will relax the 40% tariffs on US vehicle imports, and the 90-day deferment of US tariffs that the US was due to start imposing on $200bn of Chinese imports due to come into force on January 1st. Stock markets should reflect healthy gains as China also agreed to purchase large amounts of farm, industrial & energy products.
The US will release November PMI figures today, with no major data scheduled for tomorrow. Wednesday gets a little more interesting as US markets close for a national day of mourning in respect of former President George H.W. Bush. This is likely to slow things down generally, but it’s always worth remembering that when liquidity is removed, the potential for exaggerated movements is created. Thursday brings us Initial Jobless claims (exp +225,000), with the grand finale to the week coming with Friday’s Non-Farm Payrolls for November (exp +200,000), with revisions to last months figures being carefully monitored.