US stocks futures spiked just before 8 am Eastern Time on Tuesday after the Chinese Ministry Commerce struck an unexpectedly conciliatory tone, saying it believed trade differences should be "resolved through dialogue."
- CHINA HOPES U.S. TO STOP WRONG DOINGS,MEET CHINA HALFWAY:MOFCOM
- CHINA COMMERCE MINISTRY SAYS THE DIFFERENCES AND FRICTIONS BETWEEN CHINA AND THE U.S. SHOULD BE RESOLVED THROUGH DIALOGUE AND NEGOTIATIONS
This was a marked departure from rhetoric bashing Secretary of State Mike Pompeo and a travel advisory warning about the risks of traveling in the US.
Nasdaq futures shot higher, setting the stage for an even more robust recovery after the index tumbled into correction territory on Monday.
To be sure, Washington and Beijing have tried this approach before (remember the 'trade truce' that now seems like a distant memory?). The approach worked until a deal was reportedly imminent, at which point Beijing reneged on all of its agreements.