There are reports from Chinese media that the White House has reached out to discuss a trade agreement, and President Trump will speak with Chairman Xi Jinping.

Many will focus on who 'backs down' first, but that is not important. What matters is that there are signs of progress after a series of reports indicating that businesses on both sides are suffering greatly, and both sides have had to exempt some items from high tariffs. That is exactly what the market wants, a first step in the long journey of negotiations ahead.