The big news overnight came from the South China Morning Post, which echoed what Bloomberg reported earlier this week, namely that the US and China have "tentatively" agreed to another truce in their trade war in order to resume talks aimed at resolving the dispute.
But while the original SCMP report helped boost risk sentiment overnight, sending futures to session highs, a subsequent report by the WSJ in turn slammed sentiment, after it detailed that the ceasefire is not unconditional but instead Chinese President Xi Jinping will present Trump with a set of terms the U.S. should meet before Beijing is ready to settle a market-rattling trade confrontation.
Among the preconditions noted by the WSJ, Beijing is insisting that the U.S. remove its ban on the sale of U.S. technology to Chinese telecommunications giant Huawei Technologies Co. Beijing also wants the U.S. to lift all punitive tariffs and drop efforts to get China to buy even more U.S. exports than Beijing said it would when the two leaders last met in December.
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