The enthusiastic response to the stock market highlights how badly investors want to end this trade struggle between the two most important economies in the world.
"The trade war and the weapons used in it create distortions in the economy," said Mike Loewengart, head of investment strategy at E * Trade. "It has the potential to hinder global growth."
Evidence of a real breakthrough in trade talks could boost stocks. US stocks surfaced Thursday afternoon following the Wall Street Journal report that Trump officials are considering whether to raise tariffs for China. The rally was losing steam when investors realized that nothing was formally decided ̵
"The optimism of the last few days shows that it really comes down to this trade war," said Lawwagen.
Both sides face a deadline of March 1 . It seems unlikely that negotiators will resolve the deep structural issues that have hurt the rival nations until then – if at all. However, analysts are increasingly saying the bargaining window will be extended.
Michael Herson, Asia's director of the Eurasian group, believes the "limited deal" is "more likely" in the coming months because President Donald Trump wants to calm investors and boost the economy before the 2020 elections  However, trade peace may not be such as to satisfy Chinese hawks in the White House.
"This will be an unstable and incomplete truce, a deal that far does not address the deep questions between the two countries and economies," Hirson wrote in a report published late last week
While a wider resolution would be "ideal," the market will be pleased with everything that pushes the US and China off the brink.
"Any growing progress in finding an agreement will be perceived by investors," he said.
2. Davos:  The annual meeting of the World Economic Forum begins on Tuesday in Davos, Switzerland. Every year, the event attracts thousands of the richest and most powerful people in the world who meet and talk at fairs in the European ski resort
3. The Revenue Season: Last week, it was all about US banks' revenue. It is now time for other companies to report on the results of the last three months of 2018
Any action would be a surprise. In Japan, short-term interest rates are in negative territory since 2016. Meanwhile, the ECB promised to keep interest rates in the summer of 2019. The bank wants to avoid strong volatility after the end of its mass program to buy bonds in December. 19659003] China will also report its GDP in the last quarter of 2018. The country's last quarter saw its weakest quarterly growth since the depths of the global financial crisis. Market observers will want to know if the trade war with the United States continues to have a major impact. Economic obscurity: The eclipse of some important economic data goes on this week when the government closes in the fifth week. US reports are a gold standard and business leaders use them to plan investments and direct companies. The upcoming week will include these three from the Sales Department: New Resale of Residential Buildings and Revised Building Permits (Friday); (19459010) – Wynn Resorts earnings, China's gross domestic product (GDP), gross domestic product (Thursday)
6. Fourth Quarter
Friday earnings of Southwest Airlines (LUV), American Airlines (AAL), Starbucks and Intel (INTC)