Market Rallies As Chinese Media Talks Down ‘Phase 1’ Deal

While yuan is weakening following SCMP headlines talking down the US-China trade deal, it appears the US equity algos only saw one thing ‘deal’ and rallied…

SCMP reports that:

“Chinese government its reportedly taking a cautious approach in choosing a venue for the US-China Phase 1 deal signing and will avoid giving too many concessions according to sources and diplomatic observers…

And MNI adds

China will not fully acquiesce to key U.S. trade demands in areas such as intellectual property rights protection…

…China’s Ministry of Commerce also cast doubt on claims President Trump that China could buy up to $40 billion to $50 billion of American agricultural products a year, noting that the peak for Chinese imports of U.S. farm goods was $29 billion in 2013.”

But “investors” bought US stocks on that?

Let’s see what happens next