The alternative ending for last night's Trump-Xi dinner...

Chinese stocks soared after the trade truce, but like US, leaked back in the afternoon session with no follow-through...

But it was China's currency that really surged - jumping around 1.1% -the biggest daily gain since August...

Similar picture in Europe - big gap open and euphoria fades...

Is France weighing on sentiment?

The elites have gone too far. The costs of the 2008 financial crash have been met by ordinary people, not the greedy bankers & financial spivs who caused it. The people have had enough of austerity & falling/stagnant wages. What’s happening in #France now is only the start. — Neil Clark (@NeilClark66) December 3, 2018

US Futures ramped instantly, with Dow futures gapping up almost 500 points before exuberance faded...

On the cash side, Trannies and Small Caps leaked into the red before a buying surge restarted (don't forget it is the first trading day of the month too)...Nasdaq was the day's best performer...

Dow dumped after tagging 26k overnight...

Critically, the S&P stalled exactly where we thought - around 2800...

Dow and S&P pushed well above the big technical DMA levels but Nasdaq found resistance...

FANG Stocks are up 6 days in a row...

AAPL, AMZN, and MSFT are chasing each other's tale at the same market cap...

Credit markets compressed on the day, but after the initial gap tighter, spreads pushed wider all day...

Treasuries were mixed with the short-end higher in yield and long-end notably outperforming...

10Y yields plummeted after their initial gap higher overnight, ending lower on the day at 2.98%... (lowest since September)

The yield curve collapsed despite the trade truce hype... This is the biggest flattening in 2s30s since Dec 2017

With 3s5s inverting for the first time since 2007...

And 2s5s also inverting into the close...

The Dollar ended the day lower from Friday's close but it ended at the high of the day and ramped non-stop from around 4amET...

Cryptos slid lower over the weekend...

With Bitcoin back below $4000...

Oddly mixed bag in commodities too - copper ended notably lower despite what might be seen as a positive for China, Crude flip-flopped around, and PMs managed gains on a weaker dollar...

Gold jumped to one-month highs at $1240, blowing above its 50- and 100-DMAs

WTI Crude surged out of the gate, back above $53.50, despite Putin confirming no new additional production cuts. But as reality and uncertainty loomed, WTI faded back...

Gold strengthened against Yuan back to its key 8500 level..

Finally, we ask, who are you going to believe, desperate politicians need a win or the bond market...

Makes you wonder?

Is the really big story today the fact that the Dow couldn’t hang on to that early 450 point gain which has since been cut in half? Or maybe it’s the 10-year T-note yield slipping back below 3%, which shouldn’t be happening in a real risk-on day. — David Rosenberg (@EconguyRosie) December 3, 2018

And then there's this...