China Closes Its Eyes After Trump Blinks

The Chinese are playing hardball and pushing for a full tariff rollback…

Highlights

• The Chinese are playing hardball and pushing for a full tariff rollback…

• …sending equity futures back down amid lowered EPS guidance

• Gold has been rallying, but not because of inflation fears

• Fed’s Beige Book delivers more weak survey data

Key Takeaways

• China Toughens Negotiating Stance: No sooner did Donald Trump blink than Beijing served up a black eye as the Chinese Commerce Ministry ignored the President’s olive branch and issued a statement that there will be no trade talks or a trade deal until all the tariff hikes are rolled back. Let’s see how the administration responds because Donald Trump is on record saying that tariff is his “favorite word.”