Global Markets Hold Breath Amid US-China Trade Talks

Global markets exhibited cautious optimism as top trade officials from the US and China are scheduled to meet in Geneva. The dialogue aims at de-escalation, though China remains wary, advising to watch actions as well as words. Investors showed tepid enthusiasm, notably in Hong Kong, pending further fiscal stimulus.

In a strategic move, China hinted at potential interest rate cuts and facilitated insurance investments in stocks, boosting investor sentiment ahead of the US Federal Reserve meeting. While no major policy shifts are anticipated, the market is keen to gauge sensitivity to employment and inflation metrics.

Market dynamics shifted as US futures maintained gains, though labor data tempered expectations of future interest rate cuts. In Asia, currencies retreated slightly after recent gains, while the Indian rupee weakened due to intensified regional conflict. The focus remains on second-tier European economic data and multinational earnings reports.

(With inputs from agencies.)