The weekend news of a trade truce between China and US didn't come as much of a surprise, it had been well-canvassed:
- Trump - Xi meeting: US agreed to no new tariffs on China goods
- Trump relents on tariffs, Huawei as US-China trade talks set for a revival
Mizuho in Tokyo out with response:
- Positive reaction will be short-lived
- USD to weaken
- US, China reached no lasting resolution
- reaction likely to exhaust itself by the end of the day on Monday
More:
- US firms to be allowed to sell their products to Huawei was a surprise
- suspending additional tariffs on China and resuming trade talks were within expectations
- China has gained a lot from summit
- existing tariffs remain intact
- the risk of Trump abruptly making announcements on twitter remains
The truce gap:
