Though there is little to be cheerful about, Chinese Vice Premier Lui He and his team arrived in Washington yesterday with the hope of getting at least a partial agreement done.
According to the latest news, a currency pact would be essential for sealing an interim deal. Then, the officials would move to the next stage of the game, which would include less agreeable subjects to talk about such as intellectual property, data security and of course forced technology transfers.
The US dollar index gapped lower, while the US 10-year yield jumped to 1.60%. The short end of the US sovereign yield curve flattened as the Fed announced to buy more treasury bills to avoid a renewed liquidity crunch in the short-term money markets. But it is not a QE, said the Feds Chair Powell, muddling the market.
What did Powell mean buy 'it's not QE?'
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FTSE to open 10 points lower at 7156
DAX to open 18 points lower at 12076