A recent thawing in the trade stance between the United States and China has injected optimism into global markets, pushing risk assets higher shortly after the U.S. stock market closed on Wednesday.
U.S. Treasury Secretary Scott Bessent articulated the prevailing sentiment when he stated, “The current tariffs and trade barriers are unsustainable, but we don’t want to decouple.” His comments come in light of an upcoming visit to Switzerland, where he is set to meet with Chinese counterparts for crucial trade discussions this weekend.
Amid these developments, a spokesperson from the China Ministry of Commerce noted that “senior U.S. officials have made a series of remarks hinting at adjustments to tariffs” and expressed a desire to engage on tariff-related issues. The spokesperson added, “China has carefully evaluated these messages from the U.S. side and, after fully considering global expectations, China’s own interests, and the appeals of American industries and consumers, has decided to agree to engage with the U.S.” This marks a significant shift in both nations’ approaches towards trade relations.
The immediate market response to this news has been pronounced. Bitcoin (BTC) surged approximately 3%, reaching $97,200, while futures for the Nasdaq 100 and S&P 500 indices jumped by about 1%, signaling increased investor confidence.
As the weekend negotiations approach, market participants will be closely monitoring developments for any signs of a constructive outcome that could pave the way for a more stable trading environment between the two economic powerhouses.
