With just minutes left until the close, traders were desperate for hints whether there will be a thumbs up or thumbs down overnight into tomorrow’s trade negotiation deadline. And moments ago it appears they got it when the VOA’s Steve Herman quoted the US-China Business Council’s Doug Berry that a US-China trade deal is coming, although it “is going to be smaller than some people had hoped.” Still, as Barry says, “a deal of any kind is more than a lot of skeptics have felt.”
— Steve Herman (@W7VOA) October 10, 2019
Of course, if Trump opts for a purely optical package, one which doesn’t address any of the core issues in the US-China feud, the move higher in risk will be brief and shallow, perhaps similar to this…
… and will reverse quickly as there have been numerous such “ceasefires” in the past which lasted at most a few weeks.
For now, however, it will do and allow Trump to boast, however briefly, that he has a deal. At least until China pisses him off again, and he desperately needs a foreign diversion at which point the war can begin afresh.