By Tyler Durden
Global markets and US equity futures are higher for the third day in a row, driven by the familiar, binary trade talk “optimism on, optimism off” news cycle…
… with optimism prevailing after President Trump signaled a more conciliatory signal toward China that he could let a March 1 deadline for a trade agreement with China “slide” if both sides are near an agreement, fueling hopes of a breakthrough in the trade war when talks get underway later in the week. As Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer prepared for talks in Beijing on Thursday and Friday to hammer out a trade deal, markets cheered the signal that there could be an extension to a tariff truce.
“Markets have interpreted the fragments of information emanating from the trade talks positively, with risk assets starting to recoup recent losses,” said Nema Ramkhelawan-Bhana, an economist at FirstRand Bank Ltd. in Johannesburg. “Let’s hope that the positivity imbued in risk assets is not based on false optimism, especially as concerns over slowing global growth continue to mount.”
Optimism got a further boost following a SCMP report that China’s president Xi is expected to join trade talks with the US delegation in Beijing …read more
Source:: Zero Hedge