What’s in Today’s Report:
- G-20 Preview: The Good, the Expected & the Ugly
Futures are modestly lower on positioning ahead of the G-20 and due to disappointing foreign economic data.
Regarding the G-20, there was no new news overnight, and the expectation remains for a trade war “truce.”
Economic data was disappointing. Chinese Nov. Manufacturing PMI dropped to 50.0 vs. (E) 50.2, the lowest since mid-2016. EU inflation also underwhelmed as the core flash HICP rose 1.0% y/y vs. (E) 1.1% y/y. So, despite some decent data this week, “ROW” (rest of world) economic activity remains underwhelming.
There are no economic reports today and just one Fed speaker, Williams (1:00 p.m. ET), but he won’t move markets. So, markets should be in a general holding pattern ahead of the G-20 and I’d expect a quiet day. That said, there has been a constant flow of headlines on the potential outcome of the Trump/Xi meeting, so we’ll continue to watch the headlines for any headline surprises that could cause volatility.