Futures, Yuan Spike On China Tariff Delay Headlines

US equity futures and China's yuan both kneejerked higher on Bloomberg reports that President Trump is considering pushing back the deadline for imposition of higher tariffs on Chinese imports by 60 days.

Having already hinted at it during a pool spray today that he was open to letting the March 1 deadline for more than doubling tariffs on $200 billion of Chinese goods slide if the two countries are close to a deal, Bloomberg reports that, according to people familiar with the matter, Trump is weighing whether to add 60 days to the current deadline to give negotiations more time to continue.

Yuan spiked...

As did US futures...

However, some human traders (as opposed to headline algos) are wondering why this would be perceived as bullish at all as it simply indicates they are no closer to deal than they were 60 days ago and the 10% tariffs will remain in effect - weighing on global trade (as the Baltic Dry Index collapse suggests)...

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are in Beijing for the latest round of high-level talks with Chinese Vice Premier Liu He on Thursday and Friday. Negotiations this week are focused on how to enforce the trade deal and putting on paper a framework agreement to present to the two presidents.