President Trump sent global markets roaring higher after he and President Jinping agreed to de-escalate the tit-for-tat tariffs. It’s only for the next three months, but signals Trump is realising the potential damage he is causing to the US economy.  

This is good news, when you consider Fed Reserve Chairman Powell, stated the US interest rates are near neutral, with limited rate hikes in the foreseeable future. This caused a softer US Dollar and risk on sentiment to start emerging. 

This couldn’t have come at a better time for despondent investors who have suffered from a lacklustre market etching lower each day. A Santa Claus rally didn’t seem possible just a week ago. December is typically a strong month for shares and historical data on the Dow Jones Industrial Index highlights this. Since 1950, December has been a positive month 74% of the time, and the average gain has been 1.55%.  

Investors should be filling their stockings with large cap stocks that fell significantly last month ahead of the year-end rally. BTI was down 24.8% in November followed by CFR -17.4%, GLN -15.2% and AGL -12.2%. 


The week ahead: 


Other Economic data releases of interest… 


Short Term Ideas 


Long Term Ideas