Markets Brace for U.S.-China Trade Talks Amid Economic Uncertainty

European and global markets are on edge as top trade officials from the United States and China are scheduled to meet in Geneva this weekend. The market's response has been tepid, reflecting uncertainty about the meeting's outcomes and the broader geopolitical climate.

U.S. Treasury Secretary Scott Bessent stressed that the talks would primarily aim at establishing dialogue. Meanwhile, China has signaled caution, warning against any duplicity in negotiations. Such developments have not deterred Wall Street futures and Hong Kong stocks from showing gains, yet skepticism remains high among market players.

In other economic maneuvers, China indicated a potential rate cut to boost investment, yet the anticipated fiscal spending remains elusive. As traders await the Federal Reserve's meeting, where policy changes are unlikely, the focus is on labor market stability and inflation concerns while European data and significant earnings reports continue to influence the market atmosphere.

(With inputs from agencies.)