From “China says it has agreed with the US to cancel existing trade tariffs in phases” posted on CNBC overnight Thursday:
Gao Feng, a ministry spokesperson for China’s Commerce Ministry, said that both sides had agreed to simultaneously cancel some existing tariffs on one another’s goods, according to the country’s state broadcaster.
The ministry spokesperson said that both sides were closer to a so-called “phase one” trade agreement following constructive negotiations over the past two weeks.
One important condition for a limited trade agreement, Feng insisted, was that the U.S. and China must remove the same amount of charges at the same time.
Fresh hopes of a “phase one” trade agreement prompted U.S. stock index futures to rally Thursday morning, with Dow futures poised to open up more than 120 points.
My take: Here we go again.