Don't know what to expect from the G-20 summit?
Kenny Polcari, director at O'Neil Securities, broke down what he believes the market will pay attention to as the world leaders convene in Argentina.
He also discussed his outlook going into 2019.
The New NAFTA
On Friday morning, Trump signed a new deal to replace NAFTA. TheStreet's Martin Baccardax reported on the signing.
President Donald Trump formally signed his intention to pursue a three-way trade deal between the United States, Canada and Mexico Friday at the G20 summit in Argentina that will replace the existing NAFTA.
The re-vamped deal, which was hammered out after months of tense negotiations with Mexico's Enrique Peña Nieto and Canada's Justin Trudeau, was still being tweaked by all sides late last night, Canadian Foreign Minister Chrystia Freeland said Thursday, amid concerns over the failure to remove tariffs on steel and aluminum imposed by the White House earlier this year.
Trump called the United States-Mexico-Canada Agreement (USMCA) "very historic" and said he was looking forward to working with Congress to finalize the agreement, insisting he didn't think passing it would be a problem.
"With our signatures today we will formally declare our intention of our three countries to replace NAFTA with the USMCA, a truly ground-breaking achievement," Trump said. "This deal will help stop auto jobs from going overseas and will bring back auto jobs that have already left. Many many jobs are already planning to come back."
The G-20 summit is over, so now what?
TheStreet's London Bureau Chief, Martin Baccardax, breaks down what investors should keep their eyes on after the G-20 Summit wraps up.
TheStreet's Jacob Sonenshine did a preview of the summit.
"Some people are going to be hedging positions to protect themselves from the downside if there is no positive conclusion from those talks," Chris Larkin, svp of trading at E*Trade told TheStreet. "People are making strategic decisions for a short period of time using the options market."
There are strong volumes of options trading, as investors are "putting up less capital to make certain directional bets," Larkin said, implying there could be healthy demand for call options, as investors don't want to commit too much capital ahead of the meeting.
There is growing uncertainty about trade progress. "There's certainly no guarantee that this is going to work," Craig Allen, president of the U.S. China Business Council told TheStreet.
"The best I can come out with is a 50-50 that we will have some form of a high-level agreement for a stand still of tariffs for progress," Allen said. So, even if there's progress on the intention to work collaboratively, the issues "can't be solved over dinner." Meanwhile, Trump indicated he may continue to play hard ball, saying earlier this week: "The only deal would be, China has to open up their country to competition from the United States."