Update 2: Liu He has offered a terse comment on today's talks, saying only that they went "fairly well."
- CHINA'S LIU SAYS TRADE TALKS WITH U.S. WENT 'FAIRLY WELL'
* * *
Update: Commenting on this morning's talks with Liu, Steve Mnuchin tried to reassure the market that they were "constructive."
- U.S. TREASURY SECRETARY MNUCHIN SAYS CHINA TRADE TALKS WERE CONSTRUCTIVE
Stocks have moved slightly higher on the headline.
* * *
With stocks plumbing the lows of the session and Uber's indicated open sinking further below its IPO price, this is probably the last thing the market wanted to hear.
Only two hours after arriving at the US Trade Rep's office Friday morning, Vice Premier Liu He has already left the building. He isn't due to head back to Beijing until 4:30 pm ET.
Liu He stepping out from USTR at 11:28am. Shaking hands with @stevenmnuchin1 and Lighthizer. Liu He waved at the camera. No comments.The meeting this morning last about 2 hrs. #china #trade pic.twitter.com/AFkZ1uOTJE— ChiaChieh(Jane)Tang 唐家婕 (@ChiachiehTang) May 10, 2019
The presumption is that no deal has been reached, and little, if any, progress has been made.
- TOP CHINESE TRADE NEGOTIATOR LIU HE LEAVES U.S. TRADE REPRESENTATIVE'S OFFICE
Stocks aren't reacting well to the news.
As we pointed out earlier, shortly before Liu's exit Global Times editor Hu Xijin tweeted that China is basically insisting that US cave on all its major asks.
So Chinese side insists Trump fold on all demands. Good luck unless S&P is at 2000 https://t.co/wLrjvD4aLm— zerohedge (@zerohedge) May 10, 2019
Some Twitter wits couldn't help but poke fun at some of the headlines...
We now await for a readout of last night's dinner and the talks from this afternoon.