Cold feet again?
The Nikkei is reporting that Beijing has double down on demands that may threaten to delay a preliminary trade agreement with the US.
The report says that China is digging in on insisting that US withdrawal all tariffs levied since summer of last year before entering an agreement. Pres. Trump is likely not thinking along those lines in Phase I of what will be a drawn out process.
Phase 1 is intended to focus on expanding American imports into China, but does not address the key structural issues like IP theft.
Trade deals sound good on paper but once the rubber meets the road and both parties dig in a bit more, the risks of a deal break down are real.
The US stock market is taking it in stride. The major indices are trading little changed on the day.
Gold meanwhile is down $25 or -1.67% which suggests no worries/be happy.
If the rhetoric becomes more pervasive, however, we could see a reversal of the market forces going forward.
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