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Markets Soar Into Sea Of Green

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(edited)

So far, Friday has been a rerun of the Thursday session, where early "trade war" gloom turned to euphoria with the market convinced a mini trade deal between the US and China will be announced momentarily, just as soon as Trump and Liu He are scheduled to meet at 2:45pm in the White House. Throw in some Brexit optimism and there's your reason why US equity futures jumped over 30 points overnight...

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... and why global stock markets are a sea of green.

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FULL ARTICLE -  https://www.zerohedge.com/markets/sea-green-trade-deal-brexit-optimism-send-futures-world-markets-soaring

Note - the article is huge and contains Market Snapshot / Top Overnight News From Bloomberg / Top Asian and European News / FX / Commodities / US Event Calendar / Overnight Wrap ConclusionThe following is just focused on US, China and Brexit. 

The improvement in appetite for riskier bets came after U.S. President Donald Trump on Thursday called the first day of trade talks with China in over two months “very, very good.” Trade optimism was bolstered overnight after a Chinese state newspaper said on Friday that a “partial” trade deal would benefit China and the United States, and Washington should take the offer on the table, reflecting Beijing’s aim of cooling the row before more U.S. tariffs kick in.

China’s top trade negotiator, Vice Premier Liu He, said on Thursday that China is willing to reach agreement with the United States on matters that both sides care about so as to prevent friction from leading to any further escalation. He stressed that “the Chinese side came with great sincerity”. Adding to that, the official China Daily newspaper said in an editorial in English: “A partial deal is a more feasible objective” adding that “Not only would it be of tangible benefit by breaking the impasse, but it would also create badly needed breathing space for both sides to reflect on the bigger picture."

Additionally, and not coincidentally, hours ahead of an expected meeting between China’s Liu and U.S. President Donald Trump at the White House, China’s securities regulator unveiled a firm timetable for scrapping foreign ownership limits in futures, securities and mutual fund companies for the first time, suggesting that professional US gamblers will be welcome to invest, and lose, other people's money in Chinese fraudcaps. China previously said it would further open up its financial sector on its own terms and at its own pace, but the timing of Friday’s announcement suggests Beijing is keen to show progress in its plan to increase foreigners’ access to the sector, which is among a host of demands from Washington in the trade talks.

Chinese officials are offering to increase annual purchases of U.S. agricultural products as the two countries seek to resolve their trade dispute, the Financial Times reported on Wednesday, citing unidentified sources. The U.S. Department of Agriculture (USDA) on Thursday confirmed net sales of 142,172 tonnes of U.S. pork to China in the week ended Oct. 3, the largest weekly sale to the world’s top pork market on record.

A (very unlikely) U.S.-China currency agreement is also being floated as a symbol of progress in talks between the world’s two largest economies, although that would largely repeat past pledges by China, currency experts say, and will not change the dollar-yuan relationship that has been a thorn in the side of Trump. There were also overnight reports that the White House is reportedly mulling Public Company Accounting Oversight Board (PCAOB) dispute over access to China audits, according to reports. Officials are fixating on why Chinese companies can sell shares in the US when American regulators are prohibited from inspecting their books.

Analysts have noted China sent a larger-than-normal delegation of senior Chinese officials to Washington, with commerce minister Zhong Shan and deputy ministers on agriculture and technology also present. Separately, the SCMP reported that China's Vice Premier Liu has a letter from President Xi, which may or may not be given to US President Trump in their meeting today. The sudden optimism about a potential de-escalation is in stark contrast to much more gloomy predictions in business circles just days ago on the heels of a series of threatened crackdowns on China by the Trump administration. On Tuesday, the U.S. government widened its trade blacklist to include Chinese public security bureaus and some of China’s top artificial intelligence startups, punishing Beijing for its treatment of Muslim minorities. Surprised by the move, Chinese government officials told Reuters on the eve of talks that they had lowered expectations for significant progress.

Friday’s China Daily editorial also warned that “pessimism is still justified”, noting that the talks would finish just three days before Washington is due to raise tariffs on $250 billion worth of Chinese imports. The negotiations were the “only window” to end deteriorating relations, it added. Investors cautioned that markets were hoping for, at best, a deal limited in scope, and they noted that sunny rhetoric had in the past failed to translate into more meaningful moves. “I would caution that we have been here before, where we have seen positive talk,” said Mike Bell, global market strategist at J.P. Morgan Asset Management. “It’s possible they will be able to do a smaller deal around tariffs, where there is some room for movement.”

Elsewhere, Brexit optimism was also rampant and the pound soared higher on Friday - its largest daily percentage gain in seven months and biggest 2-day jump since June 2016 - after Donald Tusk, EU council president, said he had seen “promising signals” about the chance of a fresh Brexit agreement between the UK and the EU, even if the country hasn’t come forward with a workable, realistic plan.  Optimism that a deal could be reached has been increasing following a meeting between Boris Johnson, UK prime minister, and Leo Varadkar, Irish taoiseach, on Thursday, after which the two said they could see a “pathway” to a possible Brexit deal.

After meeting British Prime Minister Boris Johnson for talks, Irish Prime Minister Leo Varadkar said on Thursday that a deal to let Britain leave the European Union in an orderly fashion could be sealed by the end of the month. Varadkar called the talks “constructive,” while the two leaders said in a joint statement that they could “see a pathway to a possible deal”. But it remained unclear what the pair agreed on. But with Britain due to leave the world’s biggest trading bloc on Oct. 31, the fate of Brexit is still in the balance. Market players said investors remained skittish. Moves in sterling reflected a tendency to jump on any signs of progress.

Edited by DayTrader
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Yes, the markets are responding the Ending of trump's idea / mess. 

Celebrating the ending of a failed war.

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(edited)

Just the way you word it kills me, you hate him so much he doesn't even get a capital T too 🤣

Too much effort

Edited by DayTrader
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5 minutes ago, Enthalpic said:

Yes, the markets are responding the Ending of trump's idea / mess. 

Celebrating the ending of a failed war.

What are you smoking up there in Canada?

If it was a failure the Chinese wouldnt be signing anything!!!!

The market is celebrating more success in the trade deal to come along.

No one (US President) was able to bring China to the negotiating table!!!! and achieve this.

Lets see Trudeau pull some magic other than white face getting injected with loads of melanin ;)

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Just now, ceo_energemsier said:

What are you smoking up there in Canada?

If it was a failure the Chinese wouldnt be signing anything!!!!

The market is celebrating more success in the trade deal to come along.

No one (US President) was able to bring China to the negotiating table!!!! and achieve this.

Lets see Trudeau pull some magic other than white face getting injected with loads of melanin ;)

Weed

Deals are signed when both sides want an end, I wouldn't assume massive concessions from China; If you know otherwise please share.

Oh yes, the Sheer campaign: "Not Trudeau."

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(edited)

1 minute ago, Enthalpic said:

Weed

Deals are signed when both sides want an end, I wouldn't assume massive concessions from China; If you know otherwise please share.

Oh yes, the Sheer campaign: "Not Trudeau."

Where are you munchies  made in, China? LOL

Edited by ceo_energemsier

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