US equity futures are up along with bond yields as the dollar fades (and yuan gains) following misleading headlines from The FT reporting US and China officials have “resolved most of trade deal issues.”
“We’re getting into the end-game stage,” said Myron Brilliant, executive vice-president for international affairs at the US Chamber of Commerce.
All sounds awesome right? Bond prices are down (yields up) …
And stocks are surging…
There’s just one big thing wrong: Both countries have yet to agree on what happens to existing U.S. duties on Chinese goods and the terms of an enforcement mechanism to ensure China keeps to the trade deal, Financial Times reports, citing people briefed on the talks.
“Ninety per cent of the deal is done, but the last 10 per cent is the hardest part, it’s the trickiest part and it will require trade-offs on both sides,” he told reporters on Tuesday.
So, in other words – no progress whatsoever as enforcement is all that matters and Trump’s threats of maintaining the tariffs as a mechanism of enforcement is certainly something the Chinese – whose economy is awesome again, remember – will not stand for.
Nasdaq futs just took out the highs of the year…
We suspect once the humans read The FT article, things might fade.
As we note AUD already is – a currency that should be jubilant on this…
So finally – summarizing The FT article – besides the sticking points that US and China have been unable to resolve for the past 4 months, everything else is resolved.
Trade Accordingly.
via ZeroHedge News https://ift.tt/2VdmP4M Tyler Durden