US benchmarks inched higher ahead of the G20

• The Dow Jones Industrial Average, DJIA, ended higher by 73 points, or 0.3%, at 26,599.
• The S&P 500 index ended 0.6% higher at 2,941, notching a 6.9% rise for the month, its best June since 1955. 
• The Nasdaq Composite Index climbed 0.5% and made a 4.4% quarterly return.

US benchmarks on Friday inched higher ahead of the much-anticipated meeting between President Donald Trump and Chinese President Xi Jinping at this weekend's G20 where resuming trade talks seems to be the best attainable result of the Trump-Xi meeting at the G20 summit. The Dow Jones Industrial Average, DJIA, ended higher by 73 points, or 0.3%, at 26,599, finishing with a 3.4% rise for the quarter and a 14% advance over the first half of 2019. The S&P 500 index ended 0.6% higher at 2,941, notching a 6.9% rise for the month, its best June since 1955. The Nasdaq Composite Index climbed 0.5% to end at 8,006, putting up 7.4% in June and made a 4.4% quarterly return.

While the Fed has been the main driver, this weekend's G20 will determine whether there will be another round of tariffs or not on Chinese imports and the markets are pinning hopes that the two nations will be able to strike a deal in the last quarter of this year. "Despite some of the reporting in the press, we think that the US and China are poised to return to the negotiation table. We get the sense that the market is anticipating this too, but a confirmation of such should help to support risk sentiment in the coming days," analysts at TD Securities explained.

DJIA levels

The DJIA remains glued to the pivot at 26552 on the 4-hour chart, testing the 20 June low and shying away from the 3rd Oct 2018 highs. Below 26500, the prior sideways consolidating above the 61.8% Fibo retracement level of April to June swing highs and lows guard 25984 and then a 50% mean reversion of the current range to the 257940s.