Ray of hope in US-China trade war?

A statement of Gao Feng from China’s commerce ministry to the effect that China may not instantaneously respond to the latest tariffs imposed on them, led to a boost in US stock futures and European stocks. He stated that China is now interested in removing the new tariffs to prevent further escalation of war. This statement comes in the wake of fresh imposition of tariffs by Beijing on US$ 75 billion of US goods, and the retaliation by US with an additional 5% levy on goods stemming from China.

“Global equity markets are finding reason to stay optimistic on Thursday as comments from China’s commerce ministry are giving investors some hope for progress in trade talks with the next deadline for higher US import tariffs just around the corner,” opined Carl Campus, economist at BMO Capital Markets.