Futures Spike On Reports US-China Talks Extended For 3rd Day

Like clockwork, fewer than 30 minutes after President Trump tweeted that US-China trade talks were “going very well”, eliciting a bump in US equities, the top editor at China’s English-language Global Times reported that the US delegation would remain in Beijing for a third day after Tuesday’s talks stretched late into the evening.

The tweet, and the subsequent BBG headline, prompted futures to take another leg higher.

China

As @fxmacro pointed out, an extension means there won’t be any material leaks today…so traders can go home and get some rest before Trump’s big speech tonight.

And while Trump and the Chinese have preferred to focus on efforts to hammer out disagreements, we can’t help but wonder if the talks have hit an impasse as the mid-level delegations struggle to find an area of agreement to serve as a foundation for the next round of talks?