Having slumped to session lows, US stock futures - extremely sensitive to any trade-related headlines - surged instantly when Bloomberg reported that trade hawk Lighthizer had a good feeling about tomorrow's dinner and would be surprised if the China dinner fails:
- LIGHTHIZER SAYS HE WOULD BE SURPRISED IF CHINA DINNER FAILS
The headline was enough to spike equity futures, however algo momentum was quickly stopped when Reuters published its own take on what Lighthizer had just said:
- LIGHTHIZER: EXPECT XI-TRUMP DINNER TO BE A 'SUCCESS,' BUT NO PREDICTION ON POSSIBLE DEAL
The following clarification from Reuters did not help sentiment either:
- LIGHTHIZER SAYS WHETHER OR NOT TRUMP AND XI REACH A TRADE DEAL IN THEIR MEETING IS ENTIRELY UP TO THE TWO PRESIDENTS
... but by then the headline scanning algos had established enough upside momentum, and having spiked on Bloomberg's initial take which boosted optimism for a favorable outcome especially once CNBC's own creative take came in...
... and refuting the Goldman pessimism we reported earlier, animal spirits have awoken with the Trump administration clearly intent on massaging stocks before - and perhaps after - the much anticipated dinner tomorrow.