The long awaited signing of the phase 1 trade deal between the USA and China will happen today. The text of the deal has not yet made public. The phase 1 was accompanied by the postpone of new tariffs that were supposed to be implemented in the middle of December. The already implemented tariffs are not lifted. As the phase 2 deal is not expected to happen before the November’s Presidential Elections, today’s phase 1 deal is more of a cease-fire between USA and China. A selling the fact reaction from market participants, that would set a risk-off mode for today, is a probable scenario.
Yesterday, JP Morgan reported the best earnings of its history. Today Bank of America, BlackRock and Goldman Sachs are reporting their earnings.
Macro releases: Yesterday’s US inflation reading that decreased, proves the FED’s monetary policy right. Today’s economic calendar includes the UK’s inflation, the European industrial production and the US crude oil inventories. Market participants will make a health check with these two numbers.
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