Equity markets around the world are higher this morning on talk of a possible breakthrough in the contentious trade negotiations between Washington and Beijing. Reports are that China has agreed to buy $1.2 trillion in U.S. goods as well as improve its laws regarding forced technology transfer. As always the devil is in the details and markets may well be disappointed once again; however, it does seem as though China and the United States are moving closer to a deal that would be a major win for President Trump.
Bloomberg reported that a deal is in the works that would include the Chinese lower tariffs across the board on American products and following through on ending forced technology transfer. However, China has made it clear that removing tariffs on Chinese goods immediately is necessary to conclude a deal.
It seems the sticking point is how America can monitor and enforce China living up to its commitments.
Markets were slightly higher with S&P futures up single digits and the Dow Industrials up less than 100.