Looking ahead, Chinese officials were set to arrive in Washington on Jan. 13 for a four-day meeting with U.S. counterparts, to sign a preliminary trade pact to end their protracted tariff conflict — a trade clash that had been a the center of investors’ minds before the Mideast worries. The South China Morning Post reported that China had planned to arrive earlier, but delayed their plans after President Trump announced a Jan. 15 date for the signing of the deal.
Over the weekend, Chinese Foreign Minister Wang Yi reportedly urged restraint and said it opposed the use of force in international relations, according to a post on the website of China’s Foreign Ministry. The report also indicated that Yi spoke to Iranian Foreign Minister Javad Zarif.
In economic data, the IHS Markit purchasing managers index for the U.S. services sector came in at 52.8 in December, versus 51.6 in November, indicating continued expansion.
Alphabet shares climbed to an all-time high after an analyst at Pivotal Research upgraded them to buy from hold. The analyst cited new potential revenue streams under new CEO Sundar Pichai.
Gold retreated from the highest in more than six years and the yen fell from a three-month high versus the dollar, while 10-year Treasury yields rose to above 1.80%.
Oil also pared gains, which reached the highest since April, to trade below $63 a barrel in New York.
It’s wait-and-see mode here, How much, if at all, do things escalate with Iran and does it ultimately impact the global economic outlook? Right now, not so much. Could it change? Sure.
Here are some events to watch for this week:
• Federal Reserve officials Richard Clarida, John Williams, James Bullard and Charles Evans speak on Thursday.
• The U.S. monthly employment report is due Friday.
Currencies
• The Bloomberg Dollar Spot Index declined 0.2%.
• The euro increased 0.3% to $1.1192.
• The British pound gained 0.6% to $1.3163.
• The Japanese yen fell 0.3% to 108.37 per dollar.
Bonds
• The yield on 10-year Treasuries rose one basis point to 1.80%.
• The yield on two-year Treasuries increased one basis point to 1.53%.
• Germany’s 10-year yield sank less than one basis point to -0.28%.
• Britain’s 10-year yield advanced four basis points to 0.777%.
Commodities
• West Texas Intermediate crude fell 0.5% to $62.71 a barrel.
• Gold gained 1% to $1,567.60 an ounce.
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