China has an ace up its sleeve in trade talks with the U.S. and stocks are going nowhere until they see how Beijing plays it

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• Investors seem to be in a wait-and-see mode this morning as trade talks between the U.S. and China continue in London. Stocks were largely flat in Asia and Europe, and S&P 500 futures aren’t going anywhere either. 

S&P 500 futures were flat this morning, following Asian and European indexes which also moved only marginally. The lack of drama in the markets seems to be an indicator that investors are waiting to see what emerges from the U.S. trade talks with China in London.