Here is what you need to know.
- Trump and Xi declare trade truce. In a meeting at the G20 summit in Buenos Aires, Argentina, on Saturday, President Donald Trump agreed to postpone new economic tariffs on Chinese imports by 90 days and Chinese President Xi Jinping said China would buy a “not yet agreed upon” amount of US agriculture, energy, and industrial products and label Fentanyl a controlled substance, the Associated Press reports.
- Global markets are ripping higher. Markets across China gained at least 2.5%, and Germany’s DAX is higher by 2.38% after Trump and Xi agreed to a 90-day trade truce. The S&P 500 is set to open up 1.55% near 2,803.
- Oil is soaring. West Texas Intermediate crude oil trades up 4.4% at $US52.95 a barrel, its highest in 10 days.
- Trump’s auto tariffs could take a $US75 billion bite out of Europe’s economy. A 25% tariff on European autos coming into the US would shave $US75 billion from growth in the eurozone next year, lowering its gross domestic production by 0.4 percentage points to 1.2%, a Barclays team led by Francois Cabau wrote in a recent note sent out to clients.
- Qatar is quitting OPEC. Qatar says it will leave the cartel of oil producers on January 1 amid plans to raise its natural-gas production and as Saudi Arabia has cut trade and transport ties while it boycotts the country over accusations that it supports terrorism and Iran.
- The US stands alone on climate change. The US was the only nation at the G20 not to reaffirm its commitment to the Paris climate accord, according to the AP.
- US markets are closed Wednesday in honour of George HW Bush. “We remember President Bush admiringly as a veteran who fought totalitarianism, a statesman who advocated for freedom, a leader who served his country, and an unabashedly dedicated family man,” said Stacey Cunningham, the NYSE Group president, according to the AP. “He will be remembered for his decades of service to the nation and the world, and it is appropriate that the New York Stock Exchange closes on Wednesday, the National Day of Mourning, to honour President Bush’s enduring legacy.”
- Wall Street banks release their 2019 forecasts.Business Insider rounded up Wall Street’s forecasts and investing advice for navigating the markets in 2019 – here’s what the pros are saying.
- Earnings reports trickle out. The luxury-furniture maker RH reports after the closing bell.
- US economic data keeps coming. Markit manufacturing and ISM Manufacturing will cross the wires at 9:45 a.m. ET and 10 a.m. ET. US auto sales will be released throughout the day. The US 10-year yield is up 4 basis points at 3.03%.
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