Like clockwork, fewer than 30 minutes after President Trump tweeted that US-China trade talks were "going very well", eliciting a bump in US equities, the top editor at China's English-language Global Times reported that the US delegation would remain in Beijing for a third day after Tuesday's talks stretched late into the evening.
China-US trade talks haven't concluded after two days of tough work. I heard they will continue tomorrow. This sends a signal: The two sides are in serious talks and working hard to solve the disagreements between them. https://t.co/PDunt3xx4Z— Hu Xijin 胡锡进 (@HuXijin_GT) January 8, 2019
The tweet, and the subsequent BBG headline, prompted futures to take another leg higher.
As @fxmacro pointed out, an extension means there won't be any material leaks today...so traders can go home and get some rest before Trump's big speech tonight.
so not sure what we are waiting for now...you can all go home and rest up for Trump show tonight— FxMacro (@fxmacro) January 8, 2019
And while Trump and the Chinese have preferred to focus on efforts to hammer out disagreements, we can't help but wonder if the talks have hit an impasse as the mid-level delegations struggle to find an area of agreement to serve as a foundation for the next round of talks?