Report: China And U.S. Reach Partial Trade Deal

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The financial world is keeping its collective eyes on the trade war taking place between China and the United States. Many feel this battle could help toss the global economy into a recession.

Both sides have held firm in their handling of the situation. President Trump has a lot riding on this since things are not going so well for him domestically. Keeping the economy propped up is a feather in his cap if he can do it.

Today, there was a meeting between the sides and reports are that a partial agreement was reached. This could provide the framework for a broader deal down the road.

The reports claim that the Chinese agree to agricultural concessions while the United States will provide some tariff relief.

Many expected some sort of "mini-deal" out of the meetings. This is all tentative since a much larger deal still needs to be struck.

The market was optimistic about the situation with the DOW up close to 500 points.

A trade deal coupled with a continued cut in interest rates could be the incentive the market requires to keep the bull run alive. Many feel that the market is overdone with cheap money. That said, exuberance can continue long past the point of sanity.

Debt is helping to keep things fueled up. As long as that continues, we might see a march to all time highs. The crash is going to come at some point but we could be seeing the groundwork that will continue the pump for a while longer.

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