Stocks Suddenly Plunge On China “Unreliable Entities” Headline

Update: Another slightly more upbeat trade headline just hit the tape: “China has already extended an official invite to Lighthizer, Mnuchin and their teams for additional trade talks in China ahead of next month’s APEC summit in the Chilean capital Santiago–from @Kevinliptakcnn & me.”

Though this headline isn’t unequivocally bullish – after all, it suggests a deal might not have been reached Friday afternoon – it at least shows talks seem to be progressing amicably

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With the world and their pet rabbit buying stocks because they are sure a US-China trade deal is imminent, a headline from Reuters has exposed just how fragile this farce really is.

An “unreliable entities list” being developed by China is ready, but whether or not the list is published will depend on how talks with the U.S. progress, Reuters reported, citing two Chinese government sources.

Clearly designed as a last minute pressure tactic on today’s mini-deal and raising uncertainty.

Sparking a sudden plunge in stocks…

Notably, this reversal struck after S&P tagged its pre-Trump tantrum losses…

Somebody tweet something, stat!