Skittish
Investors remain skittish ahead of President Trump's appearance at the New York Economic Club on Tuesday. This speech could be the main event this week, especially if the President dangles any tangible details about his upcoming meeting with President Xi of China. Likewise, any commentary on the expiring Section 232 auto tariff reprieve will garner significant attention. This event offers up a perfect soapbox for the President that if he's going to hint at tariff concession tonight could be the night.
Oil Markets
For most cross-asset classes but even more so in oil markets, the US-China trade will be the most crucial trigger for market sentiment. But in the absence of a headline boost, Asian oil markets remain mired in the disinflationary impulse in the wake of the dismal China inflation prints.
Cracks amid complacency
Cracks are starting to lengthen again, and the markets are still very much in the complacent mode. If the Presidents doesn't offer at minimum a December tariff concession, which is the markets base case scenario and that the US Administration will avoid any further escalation of its trade disputes with China, risk market could be in for a world of hurt.