• We had in-depth, candid talks

• Talked about bilateral tariffs under new circumstances

• Talked about possible extension of tariff suspensions, other matters

• Talked about concerns of trade, economic issues

• U.S. talked about on recent tariff adjustments

• Chinese side voiced concerns

• Both sides agreed to maintain stability of tariff levels

• Discussed mechanisms on trade, investment

• Both sides discussed trade, economic concerns of each other

• We noticed U.S. roll out of restrictive measures on China

• China raised representations on Section 301 probes

This is generally good news, particularly the ‘consensus’ part. I tend to think these are the basically the headlines and part of a deal that would have been announced with Trump and Xi. That was going to be a small event in any case and now there are strong signs that summit will be cancelled. Trump is now fighting a war that he’s improvising and asking China to send war ships to patrol the Strait of Hormuz.

The market is in a good mood today and this will further help. S&P 500 futures are up 63 points to 6699 while the US dollar is sagging across the board. US 10-year yields are down 5.1 bps to 4.23% as the market senses that Trump is looking for an off-ramp.

This article was written by Adam Button at investinglive.com.