Stocks Spike As White House Confirms "China Wants To Make A Deal"

Update (11 am ET): In a sign of just how eager the market is to hear anything remotely indicative that a trade deal will be reached in Washington this week, stocks rocketed higher after Sarah Sanders said that White House had reliable intel that China want to make a deal.

She basically just reiterated what Trump said in a tweet earlier today, but the market reacted like it was hearing the news for the first time and Dow futures briefly tagged overnight highs

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The Dow climbed more than 100 points before the gains started to fade.

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The comments were made shortly before the start of a scheduled 11:30 am ET cabinet meeting.

While it's unclear where Sanders got her information, Global Times editor Hu Xijin send a starkly different message when he one again communicated that China is "fully prepared" for escalation.

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Update (8:53 am ET): Almost immediately after Trump sent futures higher with a series of tweets touting the possibility of a deal with Beijing, the US Trade Rep's office appeared to pour cold water on Trump's claims by publishing a notice suggesting that Washington is sticking to its guns and raise tariffs on Friday.

  • U.S. ISSUES NOTE ON INCREASING TARIFFS ON $200B OF CHINA GOOD
  • U.S. NOTICE SAYS TARIFFS ON $200B OF CHINA GOODS GO UP FRIDAY

The notice confirmed that new tariffs would take effect on the tenth of May, and caused futures to pare some gains.

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Though futures are still well above their lows of the session.

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Futures are spiking after President Trump tweeted Wednesday morning that Vice Premier Liu He would be coming to Washington to make a deal.

Trump also accused Beijing of trying to stall negotiations in the hopes that they might be able to negotiate a more favorable deal with Joe Biden or another "weak" Democrat. Futures and the dollar jerked higher after trending lower for most of the morning.

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