There were signs last week that a first-phase US-China deal would include a tariff rollback, but Trump made clear on Friday that an agreement hasn't yet been reached and that he wouldn't eliminate all levies.
Asian shares sank on Monday, the safe-haven yen rose and gold jumped following a fresh escalation of violence in Hong Kong while uncertainty remained over whether the United States and China could end their damaging trade war. "I haven't agreed to anything". However, the reality is that any announced trade deal between the two sides in the current political environment will be short-lived, fractious, and volatile for all asset classes, including oil.
A day earlier, Trump told reporters that he did not agree to ease the tariff regime on China, even though Beijing supposedly would "like him to do so", following reports that the two sides had agreed to reduce some levies on one another's products in a goodwill gesture. The Dow Jones Industrial Average turned positive Monday on news that Boeing expects to resume deliveries next month of its beleaguered 737 Max jet.
He added that the Chinese administration wanted to make a deal more than he did, as the tariffs were generating "billions of dollars" for the US Treasury.
"After the strong rallies we've seen off the August lows, many global stock markets have become overbought on a short-term basis", said Matt Maley, a chief market strategist at Miller Tabak, in a note.
"It will be the US-China trade talks that will continue to dictate the daily swings in sentiment this week", said Jeffrey Halley, senior analyst at OANDA. He said on Saturday that Washington would only make a deal with Beijing if it was the "right deal" for America. "We're taking in billions of dollars".
"But not roll back any existing tariffs". But it's ultimately the economic data that matter and, on that front, things are improving, he said.
And the December 15 tariffs would mostly hit popular consumer products such as smart phones and laptops.
China has pushed for the USA to remove tariffs, which have the potential to wreak havoc on the global economy, as part of an agreement.
Oil has rallied more than 8% since early October amid signals the US and China were moving closer to settling the protracted trade dispute that's undermining energy demand. -China trade talks, or at least over investors' perception of them.
Still, the tariffs have hurt both countries' economies. More snow and rain fell in the Midwest on Monday.
In the United States, businesses are dealing with the tariffs' higher costs and are uncertain about their worldwide supply chains.
Demand growth may pick up in 2020 after a year of dashed expectations amid the U.S.
Trump said that if he gets a deal with President Xi, it could be Iowa or other farm country for a summit but reiterated that he is not in a hurry on a trade deal.