Mood Sours After Global Times Says “Tariffs Rollback” Needed For Trade Deal; China Will “Fight Back” If Escalation Seen
US equity futures started sliding around 6 am est. when a Global Times tweet was published detailing how China wants to work towards a “phase-one” trade deal with the US, but outlined how Washington needed “some tariffs rollback” to complete the deal. Global Times also said if Washington “chooses to raise more #tariffs and escalates trade war, China will fight back and retaliate.”
#Opinion: China wants to work for a “phase-one” trade deal with the US on the basis of mutual respect and equality, and some tariffs rollback is an important condition for a deal. If US chooses to raise more #tariffs and escalates trade war, China will fight back and retaliate. pic.twitter.com/IH382dNSC8
— Global Times (@globaltimesnews) November 22, 2019
As we outlined earlier this week, the signing of the “phase-one” trade deal has likely been delayed because the Trump administration isn’t going to roll back tariffs for a deal with China that doesn’t include core intellectual property and technology transfer issues.
The next date to watch is Dec. 15, when tariffs on about $156 billion in Chinese goods could go into effect.
“If talks are really going well, that hike will be suspended,” said Christian Whiton, a senior fellow for strategy and trade at the Center for the National Interest, told Reuters.
“If not, the US will implement them and that will throw the game into next year.”
E-mini contracts of the S&P 500, Nasdaq 100, and Russell 2000 remain in a slight decline after the Global Times tweet.
A major technical fight will play out today on the 10ema of the E-mini S&P 500 around 3,100 level — expect the area to be heavily defended. Maybe the Kudlow will be released this morning.
Fri, 11/22/2019 – 06:56