Is the market really rallying on this partial trade deal report?
I must be in crazy land
S&P 500 futures are up 23 points after a 46 point decline today. Yen crosses are higher with AUD/JPY up 36 pips (shown above).
Futures climbed after a Bloomberg report saying that China was willing to make a deal where it bought more agricultural goods along with some non-core concessions if no new tariffs went into effect.
In addition, the FT reported that China was offering to increase purchases of agricultural products in order to reach a deal.
That's hardly news. China put that on the table ages ago. Even if Trump completely folds and takes that deal then what's the upside? It probably means the Fed holds rates unchanged this month and in 3 or 6 months the trade war kicks off again.
If there's no path to a real, lasting trade deal then any rally is fleeting.