US markets ended a volatile month on a positive footing amid mounting optimism over a US-China trade deal as the Group of 20 nations (G-20) summit kicked off in Argentina - Dow up +200-points or +0.79%, with Caterpillar Inc and Boeing Co advancing +4.2% and 1.2% respectively. However, Goldman Sachs Inc fell -2.1% after reports that the Federal Reserve is intensifying its investigation into the bank’s relationship with the 1MBD sovereign-wealth fund. The news comes as Bank of America downgraded Goldman Sachs, citing uncertainty surrounding the scandal. The broader S&P500 +0.82%, NASDAQ +0.79%, with Microsoft Corp (up +0.64%) capping its best weekly performance (up +7.59%) since 2011. US trade representative Robert Lighthizer told reporters on the sidelines of the G-20 summit that he would be “very surprised” if the dinner between Trump and Xi “was not a success.” The Wall Street Journal also reported that China could resume buying US farm and energy products if the US defer a scheduled increase in tariffs on Chinese products. Some of that commentary proved prescient, with President Trump agreeing that on 1 January, 2019, the US will leave the tariffs on US$200 billion worth of product at the 10 percent rate, and not raise it to 25 percent at this time. Over the next 90 days, American and Chinese officials will continue to negotiate lingering disagreements on technology transfer, intellectual property and agriculture. Meanwhile, “China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries. China has agreed to start purchasing agricultural product from our farmers immediately," the White House said. Separately, leaders of all three North American nations on Friday (30 November) signed the new US-Mexico-Canada Agreement, meant to replace the North Atlantic Free Trade Agreeement (NAFTA) that has governed North American trade for more than 20 years. The agreement still needs to be approved by the three countries legislatures before the deal can take effect. For the week, the Dow climbed +5.16% to log its best week since November 2016. The S&P500 advanced +4.85% to post its best weekly performance since 2011. The technology-centric Nasdaq rose +5.6% to similarly settle with its best weekly gain since December 2011. For the month, the Dow gained +1.7% and S&P500 +1.7%, while the Nasdaq eked out a +0.3% rise. The companies that run the NYSE and Nasdaq both said their markets will be closed on Wednesday (5 December) and will observe a moment of silence on Monday following the passing of the 41st President of the United States, President George Herbert Walker Bush.
