Hopeful but Skeptical

Small truce between China and the US could give hope to investors.  

In what President Donald Trump is calling "a love fest" the Chinese agreed to what one might call a mini treaty. Negotiators met on the 11th of this month to discuss a possible compromise. The Americans agreed to hold off on tightening tariffs in a few day if the Chinese would make a handful of trade agreements. They promised to be more flexible in their financial sector, tighten ip laws, buy into US agriculture, and be more transparent in the money market. 

There hasn't been any written agreements made and the Chinese are still reluctant to call this a deal throughout their media streams. However, holding off on tariffs and cracking down on Chinese markets is still a pretty good outcome for investors. Who knows what could happen tomorrow and things could lash back and be even worse. maybe this is simply prolonging the inevitable. But this is better than nothing. The Chinese did show that they are serious about being more transparent by releasing a timetable outlining how they will refine the finance sector.

We can look forward to some market improvement next week and be hopeful of a full compromise and truce between the US and China.