President Trump's willingness to meet China's Xi at the G20 meeting at the end of next month and his "feeling" that an agreement will still be found seemed sufficient to break the momentum that had swept through the capital market. Equities in the Asia-Pacific were mostly lower, with Japanese benchmarks underwater for the seventh consecutive session. India and Korea bucked the regional trend. European bourses are firm, led by the communication and materials sectors. Up around 0.4% in late morning turnover, the Dow Jones Stoxx 600 has recouped about a third of yesterday's loss. US shares are trading higher, and around a quarter of yesterday's 2.4% drop appears to be recovered. The dollar is mixed, with the recent leaders, the yen and Swiss franc paring the recent gains, while the Scandis lead the advancers. Emerging market currencies are trying to stabilize. While gold's three-day rally is stalling around $1300, the Bitcoin rally is extending its 12th session.
China detailed its tariff response to the US actions, and roughly 90% of the imports from the US will have a 25% tariff. Both China and the US provocative actions left a small room to manoeuver. Specifically, the new US levies do not apply to goods in transit, and China's tariff increases will not be implemented until June 1. However, no fresh talks have been scheduled. The process by which the US will slap a 25% tariff on the remaining Chinese goods that have not been covered yet has begun but will likely take several weeks to work through, so that when Trump meets with Xi at the G20 meeting at the next of next month, the new tariff gun will be loaded.