Market Update

Global equity markets remained under the influence of the ongoing US/China trade talks throughout the week.
Initially, the week began on a positive note as indications surfaced suggesting progress toward an initial trade agreement (phase 1) between the US and China. Constructive discussions between China’s Vice-Premier Liu He, US Trade Representative Robert Lighthizer, and US Treasury Secretary Steven Mnuchin bolstered hopes for a resolution.
However, optimism waned as the week progressed due to concerns that a US bill supporting Hong Kong’s autonomy could disrupt the trade negotiations. If the phase 1 deal isn’t signed by December 15, 2019, there’s a significant chance that the next round of US tariffs on Chinese goods will come into effect.
Market losses were somewhat offset when sentiment shifted again on Friday (November 22, 2019). President Donald Trump expressed that a deal was "very close," and his Chinese counterpart, Xi Jinping, stated China's willingness to reach an agreement based on "mutual respect and equality."
Additionally, the release of minutes from the last Federal Reserve meeting (held on October 29-30, 2019) highlighted a considerable amount of disagreement within the committee. Some policymakers expressed dissatisfaction with the third consecutive interest rate cut, although they acknowledged the elevated risks to the US economy. This dissent might explain the Fed's decision to maintain interest rates, pending a "material reassessment" of the economic outlook, although the specifics of what would prompt such a reassessment remained unclear.
Despite the shortened week in the US due to Thanksgiving, significant data releases are expected. In the US, data on consumer confidence, the second reading of Q3 US GDP, durable goods orders, and the Fed’s Beige Book are anticipated. Additionally, Eurozone data on confidence, unemployment, and CPI, along with Japanese figures on industrial production, unemployment, and CPI, will contribute to global market dynamics.