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Markets (mostly) cheered the trade agreement with China.
The key points
But the narrative is stronger than just the temporary numbers above
AND A REAL BONUS
China sent their deputy minister for public safety to address the fentanyl crisis. US officials called this an "upside surprise" - completely unexpected at a trade meeting.
Equities rallied hard and BTC and Gold fell, reflecting the de-escalation. Worryingly US 10 year treasury bond yields rose sharply nearing 4.5% where prime dealers will be worrying about liquidity, something that Scott Bessent has been talking about.
US Equity Markets
‘Buy America’ Sweeps Across Global Markets After Trade Talks [Bloomberg]
The market still digesting the poor 10 and 30 year auctions last week, sold off aggressively and to a point where action may be needed, be it jawboning or liquidity or QE.
US 10 Year Government Bond Yield Daily
Gold breaks lower but the demand is still there at a lower level.
GOLD / USD Daily
And BTC definitely now the asset not correlated to tech stocks and acting like a digital Gold.
BITCOIN / USD Daily
Big pump on the news and the key point is that something has happened.
Markets can now reassess the economy for at least the next 3 months.
S&P 500 Daily
It took a lot of good news but the USD finally popped
DXY Daily