Conflicting trade war headlines have flooded out of Beijing over the past week, complicating analysts' attempts to parse exactly how the arrest of Huawei CFO Meng Wanzhou has impacted the prospects for a future deal. But amid the chaos, a headline that hit the tap a few minutes ago could set the stage for US stocks to build on yesterday's late-day rebound. According to Bloomberg, China is moving to cut its trade-war tariffs on US autos. US equity futures spiked on the news, mirroring their reaction from last Monday after Trump bragged about the concession twitter, only for Treasury Secretary Steven Mnuchin and advisor Larry Kudlow to pour cold water on the president's boasts by saying that the cuts had merely bee "discussed". Bloomberg said Chins is planning to cut tariffs on US-made cars to 15% from the current 40% has been submitted to China’s Cabinet to be reviewed in the coming days. China boosted tariffs on US-made cars to 40% as part of a raft of retaliatory measures against the US imposed over the summer. While US automakers will undoubtedly benefit from the move, Bloomberg pointed out that European automakers like Mercedes-Benz and BMW will be the biggest beneficiaries after both companies - which have sizable manufacturing operations in the US - warned about lower profits this year. European auto stocks have posted the largest gains on the news: Here's a roundup of headlines from BBG: Faurecia stock rises 5% Volkswagen stock jumps 4.3% VW controlling shareholder Porsche SE gains 4.7% Stoxx Europe Automobiles & Parts Index rises 2.9%, 2nd-biggest jump on broader index Among car suppliers, Continental +3.7%, Valeo +3.5% Daimler +3.1%, PSA +2.5%