Wary investors hope US-China talks cool high-stakes trade war
Investors are hopeful that U.S.-China trade talks this weekend will cool a trade war between the world’s two largest economies and dispel some of the uncertainty clouding financial markets, though few expect a major breakthrough just yet, News.az reports citing Investing.
The highly anticipated meeting in Switzerland could mark one of the biggest developments since U.S. President Donald Trump launched sweeping tariffs on April 2, which threw the global trade landscape into chaos and set off extreme market volatility.
"This is the mother of all negotiations," said Alejo Czerwonko, chief investment officer, Emerging Markets Americas, at UBS.
"There are hundreds of billions of dollars of trade on the line, a 145% tariff on Chinese exports that amounts to some sort of de facto embargo and grievances that extend well beyond trade."
As of 1810 GMT on Saturday, the U.S.-China trade talks in Geneva had adjourned for the day and were set to continue on Sunday, a source familiar with the discussions told Reuters.
Recently, investors have expressed optimism that the worst-case trade scenarios would not come to pass, and pointed to signs of de-escalation between the U.S. and China as a reason behind a rebound in equities.
But despite comments by Trump ahead of the talks suggesting a lower level of Chinese tariffs, and a trade deal announced on Thursday between the U.S. and Britain, many market participants said they were not expecting major breakthroughs this weekend.
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