US Trump said he doesn't think China is stepping up to the level he wants in trade talks and that China wants a trade deal more than he does
China last week invited US trade officials for further talks (WSJ)
Definitely the most interesting session of the week with some markets showing signs of life after a choppy week. Crude Oil goes back to $58 after yesterday bullish DoE inventories finishing the basically flat after a week of losses. The equity complex traded lower across the board and poised to finish this week in red for the first time since the start of November. Stocks have bounced over the past 24 hours amid an optimistic/pessimistic headline barrage that triggered wave after wave of buying then selling than buying again, as the standoff between the world's two largest economies expanded beyond trade, reducing the odds of a "phase-one" deal this year and forcing investors to shed risky assets.
Despite the inevitable and also logic loss of steam in the recent rally in equities SP500 remains very close to it highs. Gold and T-Notes have bounced off the October lows and seem very comfortable around these levels. If we look at monthly performances among major asset classes it becomes clear how the recent moves look merely as the result of intra-day headlines and very short term noise. Oil, Gold, TNotes, USD have traded in the same range for the last three months showing on one side that investors are happy with how things are at the moment. However, my idea is that things will shake up into next year and a re-balance of risk will be necessary as incoming risks have not been discounted yet.
If you missed the morning briefing from the desk click HERE