US-China Trade Talks Expected to Impact Global Markets

Global markets are showing cautious optimism ahead of key trade talks between top US and Chinese officials, set to take place in Switzerland, with hopes centered on de-escalating the ongoing tariff war that has disrupted the global economy. While US stock futures rose and Asian markets responded positively—bolstered by China's economic stimulus measures and interest rate cuts—European markets remained subdued amid skepticism about the prospects for any immediate breakthrough. Both sides have signaled that a comprehensive deal is unlikely in the near term, with US Treasury Secretary Scott Bessent emphasizing the talks will primarily focus on de-escalation, and China calling for dialogue based on equality and mutual benefit. Investors and markets are also closely watching the upcoming US Federal Reserve interest rate decision, with no major policy changes expected but significant attention on guidance regarding employment and inflation. Market enthusiasm remains tempered by uncertainty over how quickly substantive progress can be made, as well as ongoing volatility in global currencies and equities. The outcome of the talks is seen as critical in shaping short-term economic sentiment and global trade dynamics.