This Weeks Key Events Traders Are Watching

key events

As the Thanksgiving holiday weekend concludes, government officials will have to get ready for a busy and significant political and economic week. The G20 meeting is scheduled to start on Friday and will be hosted in Buenos Aires, Argentina this year.

Already, leaders are arriving to the city in preparation for the summit events. President Trump is expected to meet with Chinese leader Xi Jingping to discuss trade agreements and hopefully ease the trade tensions that have been raging since the summertime and are continuing to have a huge impact on consumer prices.

Tit-for-tat antics have been the primary events of the ongoing trade war, with each country raising tariffs on important imports and the other retaliating with even higher tariffs. Higher prices on product trades are expected to slowdown economic activity and company earnings if not resolved at the G20 Summit later this week. It has been noted already in China that higher tariffs are weakening the country’s manufacturing sector.

Experts are predicting that a ceasefire between China and the U.S. will not take place during the summit, but are optimistic however that some resolutions will begin following the meeting. U.S. and China trade agreements are essential to global trade and are already affecting U.S. stock market prices and raising the price on consumer imports, notably tech devices and tech stocks.

Meanwhile, the Federal Reserve is considering stepping into the stock market to help put a stop to the chaos occurring on Wall Street. Several significant stocks have dropped since early October and Fed is worried that interest rates are increasing faster than the economy can tolerate.

Following a two-day meeting last week, the Reserve decided to leave interest rates unchanged as of yet. Rates are expected to increase following a meeting scheduled just before Christmas. The shift from Fed would is anticipated to curb the economic slowdown that the ongoing U.S-China trade conflicts have caused.

The minutes from the Federal Reserve meeting are expected to be released on Thursday, prior to the Trump-Xi meeting. It is also anticipated that consumer spending throughout the Black Friday weekend and Cyber-Monday shopping events will help offset some of the economic slowdown occurring.

Already, the trade war between China and the U.S. has raised the price of gold. It is anticipated that if trade disputes cannot be resolved before the new year that gold prices will go even higher and the Reserve may begin tightening the money flow.

The U.S. accounts for nearly ⅕ of the world’s economy, and if interest rates grow and stocks continue falling, economic disaster could follow at a global level. The trade agreements are extremely important for influencing how labor officials will operate in the upcoming year.

Much speculation has been floating around about what Fed will do and how negotiations about U.S.-China trade will influence Fed’s interaction with Wall Street. Deals with China have been hinted at, though no conclusive proposals have been made from either country.

President Trump tweeted late last week that negotiations and talks with the Chinese were “moving along nicely”. The meeting between the two leaders will be a main event of the G20 summit and will hopefully result in a much anticipated and needed economic resolution.