The jitters are slowly coming back...
It may not be a significant risk-off wave but just the mere notion of potential trouble in talks is enough to scare markets a little following the supposed trade truce on Friday.
The likes of the yen and gold has strengthened on the news while equities and bond yields fell alongside risk currencies as well.
I don't think that China is looking to pour cold water on the verbal agreement last week but it will certainly be interesting to see if they will want more from the US should they work towards a written agreement over the next few weeks.
At this juncture, the key sticking point appears to be the December tariffs in my view.
It is something that Trump has been firm in not letting up just yet to retain some leverage but if the report above is to go by, China appears to be wanting to sneak that in.
I reckon that may be a contentious topic if both sides are to meet up for talks again over the next few weeks. They will have about a month or so to hash things out before a potential signing session at the APEC summit in Chile on 16-17 November.
In the mean time, it's looking more and more like the durability of the trade truce struck last Friday isn't going to even last through the start of the new week. And that certainly isn't an encouraging sign for risk assets - equities in particular.
