(Bloomberg) -- U.S. stocks pared gains as investors assessed the details of the partial trade deal with China. Soybeans slumped after China signaled purchases would be demand-based.
The S&P 500 retreated as President Donald Trump presided over a signing ceremony with Chinese officials. The text of the deal has not been made public, but the Chinese Vice Premier Liu He said agricultural purchases are $40 billion a year and will be driven by demand, and will rise “if the demand” is there.
“While it does not appear that the “phase one” deal addresses many of the structural issues that started the trade spat, it does mitigate the uncertainty that ongoing trade tensions present, namely the threat of new tariffs at a moment’s notice,” said Jason Pride, chief investment officer of private wealth at Glenmede.
The benchmark S&P 500 had set an intraday record for the sixth consecutive trading session, largely ignoring disappointing quarterly results from Goldman Sachs Group Inc (NYSE:GS). and Bank of America Corp (NYSE:BAC). The Nasdaq Composite and Dow Jones Industrial Average indexes also set highs. U.S. markets received an added boost earlier after White House economic adviser Larry Kudlow promoted more tax cuts.
The Stoxx Europe 600 Index was little changed, while equities across most of Asia fell. Russia’s currency weakened as much as 0.6% against the dollar after Prime Minister Dmitry Medvedev resigned and said President Vladimir Putin will choose a new government, hours after the Kremlin leader called for a series of constitutional changes in his annual address.
Meanwhile, oil futures drifted, with West Texas Intermediate trading around $58 a barrel. Gold nudged higher.
Here are some events to watch for this week:
- It’s earnings season for the biggest American financial institutions, with Morgan Stanley (NYSE:MS) and Bank of New York Mellon (NYSE:BK) Corp. still to come.
- The Federal Reserve’s Beige Book report on regional economic conditions is due on Wednesday.
- China GDP, along with key monthly data for December, come on Friday.
- A final reading on the euro-zone’s December inflation is also due on Friday.