A big turn around for US equity index trade – higher on Globex on China comments

Comments from China’s Commerce Ministry began with MofCom being couy:

• “The
  US has recently sent messages to China through relevant parties,
  hoping to start talks with China,”
• “China
  is currently evaluating this.”

But turned confronting very quickly after:

• In any possible dialogue, meeting, if US does not correct its ‘unilateral’ tariff measures, US has no sincerity at all
• US should show sincerity if it wants to talk

• US should be prepared to take action in correcting ‘erroneous’ practices, cancelling unilateral tariffs

There are more here:

• China says the US has sought to begin trade talks, China says its thinking about it …

Regardless, futures have leapt higher:

***

While not dismissing the impact of shorts scrambling, these comments show at least some progress. China has gone from saying:

• “No, we haven’t had any discussions at all”

to:

• “Maybe we’ll think about it”.

Progress of a kind.

This article was written by Eamonn Sheridan at www.forexlive.com.