You can always expect this sort of news to happen when markets get bad. This is a very important news item so pay attention.
Treasury Secretary Steven Mnuchin and Vice Premier Liu He have reportedly resumed discussions about a possible deal that would ease trade tensions.
Mnuchin and He spoke via phone on Friday, The Wall Street Journal reported.
The US is demanding that China put forth an offer before negotiations on a trade deal can begin, while China would like discussion to begin before making a formal proposal.
Trump is an ego-maniac. He will not permit his big beautiful stock market to be sullied. He will ensure a trade deal is worked out with China. That being said, we need to see if this actually moves the needle. At some point, there will be diminishing returns on US-China trade talks and we might even trade lower on the news. We cannot truly go into a bear market without a China trade deal done and the Fed removing themselves from this storyline. Now if we go lower in spite of those two things happening, then we have a problem.
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