Post-G20 surge; OPEC meeting; Swiss stock ban

Posted at 3:15 AM, Jul 01, 2019
and last updated 2019-07-01 05:15:08-04

1. Post-G20 surge: Global markets are surging after the G20 summit yielded a trade truce between the United States and China, along with a pledge from President Donald Trump to reverse a damaging export ban on tech giant Huawei.

Questions remain about whether a significant and sustainable deal can be struck. But stock investors don’t seem to mind.

US stock futures suggest the Dow could hit a record high Monday. The index is on track to open up almost 280 points, or 1%. The Nasdaq is set to rise 1.7%, while the S&P 500 could gain 1.1%.

Markets in Europe and Asia are experiencing similar euphoria. Germany’s DAX rose 1.3% in early trading, while Britain’s FTSE 100 gained 1%. The Shanghai Composite and Japan’s Nikkei both increased more than 2%.

2. OPEC meeting: OPEC meets in Vienna on Monday and Tuesday. The cartel is expected to extend production cuts that expire at the end of June, helping to prop up oil prices at a volatile moment.

Russia and Saudi Arabia have reportedly already agreed to extend cuts by six to nine months.

The move would come as geopolitical tensions regarding Iran and Venezuela have raised concerns about constricted supply, pushing prices higher. Yet there’s also been recent evidence of excess supply as global economic growth slows. Higher stockpiles drove oil into a bear market earlier in the month.

Brent crude, the global benchmark, rallied 2.9% to $66.64 a barrel on Monday. US oil prices jumped 2.7% to $60.06.

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3. Swiss stocks: European traders were barred from trading Swiss stocks Monday, the result of a breakdown of talks between the European Union and Switzerland.

Swiss regulators instituted the trading ban after negotiations stalled on the future relationship between Bern and Brussels.

Until an agreement to move forward is reached, traders will struggle to exchange shares of companies including Novartis, Nestle and Roche on venues such as the London Stock Exchange.

Switzerland’s benchmark SMI index rose 0.7% in early trading Monday.

4. Coming this week:
Monday — OPEC meeting; US and German manufacturing data; Markets closed in Hong Kong
Tuesday — German retail sales
Wednesday — US markets half day; US balance of trade for May
Thursday — US markets closed
Friday — US jobs report