All indications are good when it comes to the Chinese/U.S. trade talks. Yesterday it was reported that 90% of the issues have been resolved and the stock market has reacted well. However, there is that last 10% remaining. We do not know what it is, but most likely it is the hardest part of all the compromises that have been going on between the two parties. This morning President Trump characterized them as the ‘sticking points’ and that an agreement is looking ‘very strong’. Of course, he would be upbeat as he needs to get this done before re-election time.
For investors, they have been running stock prices up on the rumor of the deal being almost complete. So if it fails expect a very strong collapse, and if the deal goes through expect a mild reaction. Of course, the devil may be in the details and investors won’t see them react until it’s done.
We are just going to have to wait and see.