Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
A sigh of relief is sweeping global markets today, after the US and China both reported they made progress at a weekend of talks in Switzerland over the trade war.
Stocks have risen across Asia-Pacific markets, while safe-haven asset gold has dipped, on hopes of de-escalation in the trade war gripping the global economy.
The two sides have promised to release details about what was agreed later today, after both issuing encouraging statements on Sunday after the talks wrapped up.
Last night, theWhite Houseannounced a “China Trade Deal” had been reached in Geneva.
Treasury secretaryScottBessentdescribed the talks as ‘productive’, saying yesterday:
US trade representative ambassadorJamiesonGreersaid it was a “very constructive two days” of talks, adding that “perhaps the differences were not so large as maybe thought”.
For Beijing, Vice PremierHeLifengsaid the China-U.S. high-level meeting on economic and trade affairs were “in-depth, candid and constructive”.
He explained that the two countries have agreed to a new “trade consultation mechanism”.
That “mechanism” suggests a warming in relations between the two sides, who ratcheted up tariffs on each other’s goods last month, afterDonaldTrumpannounced his ‘“Liberation Day” levies on imports to the US.
Markets have responded positively, even though neither side has yet released any specific details of possible points of agreement.
China’sCSI300share index has risen 0.8%, while Hong Kong’sHangSengindex is up 1.2%. Japan’sNikkeihas risen a more modest 0.3%. The futures market suggests the US markets will rally later today too.
Kyle Rodda,senior financial market analyst atcapital.com,says:
We’ll hear from top central bankers in the UK today, as King’s College London hosts the annualBank of England Watchers’ conference.
9:00am BST:Bank of Englanddeputy governor Clare Lombardelli gives keynote speech at the Bank of England Watchers’ Conference 2025
11:30am BST: Panel on the Monetary policy outlook including BoE policymaker Megan Greene
17:00pm BST: Fire-side chat with BoE policymaker Alan Taylor
Treasury secretaryScottBessentand US trade representativeJamiesonGreerare about to hold a press briefing now in Geneva, to discuss last weekend’s talks with China….
Iron ore prices have risen too, after the US and China reported progress in their trade talks.
The benchmark June iron ore contract on the Singapore Exchange is up 2.2%, to around $99 per tonne.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange was up 1.5% earlier this morning, Reuters reports.
There are reports that US treasury secretaryScottBessentwill hold a briefing on the trade talks within the hour, in Geneva.
Oil, a gauge of global growth prospects, has risen more than 1% today after the US and China both touted progress at their trade talks.
Brent crude, the international benchmark, has risen by 80 cents per barrel to $64.75/barrel, the highest level since 29 April.
China’s trade representative, vice commerce ministerLiChenggang, told reporters that what was agreed at the weekend of talks with the US in Geneva will be worth the wait.
Liexplained:
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
A sigh of relief is sweeping global markets today, after the US and China both reported they made progress at a weekend of talks in Switzerland over the trade war.
Stocks have risen across Asia-Pacific markets, while safe-haven asset gold has dipped, on hopes of de-escalation in the trade war gripping the global economy.
The two sides have promised to release details about what was agreed later today, after both issuing encouraging statements on Sunday after the talks wrapped up.
Last night, theWhite Houseannounced a “China Trade Deal” had been reached in Geneva.
Treasury secretaryScottBessentdescribed the talks as ‘productive’, saying yesterday:
US trade representative ambassadorJamiesonGreersaid it was a “very constructive two days” of talks, adding that “perhaps the differences were not so large as maybe thought”.
For Beijing, Vice PremierHeLifengsaid the China-U.S. high-level meeting on economic and trade affairs were “in-depth, candid and constructive”.
He explained that the two countries have agreed to a new “trade consultation mechanism”.
That “mechanism” suggests a warming in relations between the two sides, who ratcheted up tariffs on each other’s goods last month, afterDonaldTrumpannounced his ‘“Liberation Day” levies on imports to the US.
Markets have responded positively, even though neither side has yet released any specific details of possible points of agreement.
China’sCSI300share index has risen 0.8%, while Hong Kong’sHangSengindex is up 1.2%. Japan’sNikkeihas risen a more modest 0.3%. The futures market suggests the US markets will rally later today too.
Kyle Rodda,senior financial market analyst atcapital.com,says:
We’ll hear from top central bankers in the UK today, as King’s College London hosts the annualBank of England Watchers’ conference.
9:00am BST:Bank of Englanddeputy governor Clare Lombardelli gives keynote speech at the Bank of England Watchers’ Conference 2025
11:30am BST: Panel on the Monetary policy outlook including BoE policymaker Megan Greene
17:00pm BST: Fire-side chat with BoE policymaker Alan Taylor