Markets have lowered their bar for what kind of U.S.-China trade headlines they'd cheer, a J.P. Morgan Asset Management global market strategist, Hannah Anderson, said Friday.
Markets have been on edge for months about trade tensions between the world's two largest economies. An American delegation led by Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer is meeting in Beijing this week with Chinese Vice Premier Liu He and his team. Discussions are expected to conclude Friday.
While markets may have at one point hoped for those negotiations to yield a resolution to the ongoing trade war, investors will now be satisfied if Washington simply opts to push back its deadline for additional tariff penalties on China, Anderson said.
"I believe we have seen expectations move from assuming China and the U.S. will resolve their differences during this 90-day negotiating period to assuming that talks would be a success if the U.S. doesn't raise or apply more tariffs on March 1," she said. "This shift reflects how easy it would be for policymakers to move the goalpost and declare victory — and how eager markets, fatigued after a year of trade headlines, are to move trade issues to the back burner."