[Monday, December 3, 2018]
World markets ramped on weekend news from the G20 Summit in Argentina where President Trump and China President Xi agreed on terms to postpone, for 90 days, a planned increase in tariffs on Chinese goods scheduled to take effect in the New Year. The delay presents more time for the two nations to negotiate. And in return China committed to purchase more US agriculture products and roll back existing tariffs on American-made autos. Global markets embraced the news. In Asia overnight Chinese exchanges gained more than +2% and the Japanese Nikkei jumped to a six-week high. Europe followed with a +1% advance across the continent. US futures pointed to a gap higher open and shares jumped at the bell. Stocks faded modestly intraday but moved back to solid gains by the close. At the bell the S&P 500 gained +30.20 to 2,790.37, the Dow added +287.97 to 25,826.43 and the Nasdaq Composite jumped +110.98 to 7,441.51 and moving out of correction territory. The Russell 2000 trailed its larger brethren, up +15.69 to 1,548.96. Crude jumped on the trade news but pulled back; WTI futures dropped into the red but closed up a quarter of a percent at 53.21 per barrel. Gold slipped to 1,236.80 per ounce. The bond market presented some disquieting news as the 3- and 5-year treasury yields inverted, historically a precursor to recession. And participants moved to the 10-Year, pushing yields lower to close below 3% at 2.99% Volatility dropped, the VIX down just over -9% to 16.44.