Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Eyes on Argentina
In a day light on economic data and almost empty on the earnings front, the market could be even more susceptible to any hints of progress (or retreat) in U.S. and China trade negotiations.
U.S. President Donald Trump and China President Xi Jinping are expected to meet of the sidelines of the G20 summit in Buenos Aires, which starts tomorrow. There will be a dinner meeting between the two leaders, and staff, Saturday evening.
The market was briefly encouraged today after Trump said he close to doing “something” on trade with China, but he added that he wasn’t sure he wanted to do it.
Optimism also faded after it was confirmed U.S. China hawk Peter Navarro will attend the dinner.
Any sense of progress could buoy the markets on going into Saturday on hopes of a tentative deal. Trump’s twitter feed will be closely watched, as will dispatches from reporters at the summit.
But investors should also prepare for volatility as algorithmic trading is exacerbating any swings on mentions of a trade deal or breakdown.
2. Chicago PMI Expected to Rise
The main piece of economic data out tomorrow is the latest measure of Midwest manufacturing activity.
The Chicago purchasing manager’s index (PMI) is due at 9:45 AM ET (14:45 GMT).
On average, economists expect that the Chicago PMI ticked up slightly to 58.6.
Shortly before that, New York Fed President John Williams will give a speech on “The Global Economy: Addressing a Future Downturn.”
3. G20 Also Big for Oil Markets
Oil traders will also be on the lookout for any news coming out of the G20.
Prices rallied today after a report that Russia was now leaning to a production cut.
Saudi Energy Minister Khalid Al-Falih and his Russian counterpart Alexander Novak will be in Buenos Aires together and a basis for a cut in supply could be agreed on the sidelines.
Any production cut would officially be announced at the OPEC+ meeting in Vienna on Dec. 6.
Oil will also be tethered to any news on China-U.S. trade discussions as many traders feel a drawn out trade war will hurt global economic growth, weakening demand for crude.