Risk appetite picks up as Trump plays down feud with China | investingLive

Easy come go, easy go come? Trump is out speaking and saying that he thinks things will be fine with China and when asked if the high tariffs against China will stand, he responded with a “no, but it could stand”. It’s not exactly clear-cut but that’s enough for dip buyers to work with. And that’s leading to a bounce with S&P 500 futures now cutting losses to just 0.3% on the day after having been down by over 1% for the most part in European morning trade.

A meeting with Xi Jinping is also confirmed and that’s helping to soothe market expectations. With the two leaders set to meet in South Korea in two weeks’ time, one can reasonably expect both camps to be playing nice and “work things out” before the meeting. That even if it will all just be for show as it always has been.

Trump is reaffirming that they still need “a fair deal” and his tone in the interview isn’t exactly really upbeat. However, it’s not to say that he’s coming down hard on China with him just saying that tariffs are “not sustainable” and that “they are what they are”.

In any case, don’t be surprised if we circle back to the same round of developments and conversation again in the coming months next year.