US Treasury Secretary Steven Mnuchin spoke to reporters about the US/China trade negotiations during the weekend IMF meetings. Mnuchin commented that he was unsure if anymore face-to-face meetings would be required. Reuters reported that the US is backing off demands to curb Chinese industrial subsidies and instead focusing on more achievable goals to reach a trade deal. The hopes that a deal is closer has Asian stocks mostly higher.
The ES however appears to have a Game of Thrones hangover as Globex volume is showing little interest. Citigroup and Goldman Sachs Group are the earnings focus and could set the tone for today. Also on deck as first quarter earnings season gets underway are MTB, JBHT, and SCHW.
The economic calendar is light with Empire State @ 8:30am EST. The Fed’s Evans is on CNBC’s Squawk Box @ 8:30am EST and has a conference speech scheduled for 1:00pm EST. Friday’s technical break higher has moved the ES into territory where upside movement should become more difficult as the ES works towards it’s Sep 21, 2956.50 back adj all-time high. Expect upside volatility to be muted with better chance of increased volatility to the downside. Size bias is clearly long into this morning’s big bank earnings.