Stocks, Yuan Jump On Reports Of US-China "Roadmap" For Trade-Talks

US equity markets are jumping to the highs of the day after the Wall Street Journal reports  that Chinese and U.S. negotiators are drawing a road map for talks to end trade deadlock, culminating with meetings between U.S. President Trump and Chinese President Xi Jinping at multilateral summits in November, citing officials in both nations. As part of preparation for the November summit, the two nations have scheduled the previously disclosed midlevel talks in Washington next week, the news of which led to a sharp rebound in risk assets in recent days.

As WSJ notes the planning represents an effort on both sides to keep a spiraling trade dispute—which already has involved billions of dollars in tariffs and comes with the threat of hundreds of billions more—from torpedoing the U.S.-China relationship and shaking global markets.

The algos immediate reaction was simple - BTFD...

The Dow is up 150 points to its highest since Feb 27th...

And the yuan is also rallying...

 

A nine-member delegation from Beijing, led by Vice Commerce Minister Wang Shouwen, will hold meetings with U.S. officials led by the Treasury undersecretary, David Malpass, on Aug. 22 and Aug. 23.