The hyper-trade-sensitive stock market jumped in the early afternoon after reports from The FT that USTR Lighthizer had told some industry executives the next tranche of levies was already on hold.
“The best we can hope for is for the two presidents to kick the can down the road at the G20 and start a process to narrow the gap,” he said.
Hope remains though...
“There is no possibility of a truly comprehensive deal, and that is a good thing because the issues are so complex,” said Mr Johnson. “There is still the possibility of some kind of a framework agreement, where we do something like freezing the current tariffs and empowering the negotiators.”
While the reaction was slow to form, there is little other catalyst for the ramp narrative...
Bond yields inched higher and while Yuan gained, the usd was unchanged.
One thing is sure - manipulating the stock market over short periods of time with a fake trade-war headline is likely at its most profitable right now.
The lack of excitment is FX and rates markets is understandable because at the same time as The FT report, Commerce Sec Ross confirmed no China trade deal will happen before January.