US, China Hold Trade Talks in London Amid Market Caution

Stock markets showed cautious movements as US and Chinese trade talks took place in London, aiming to ease an ongoing trade war that has disrupted global supply chains and investor sentiment. The FTSE 100 and other European indexes traded flat or slightly down, reflecting investor wariness amid uncertain outcomes, while Asian markets saw modest gains fueled by optimism over diplomatic progress. The talks, involving senior officials from both nations, including US Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng, were closely watched as a crucial step toward resolving tariffs and trade restrictions that have strained economies. The UK played a significant intermediary role between the US and China amidst rising geopolitical tensions and trade disputes, including China's restrictions on rare earth mineral exports vital to industries. Market analysts noted the potential for volatility given unpredictable US trade policies and White House threats targeting international investors, which have raised concerns about the US's economic stability and global reputation. Overall, while the discussions brought some relief to markets, significant uncertainty remains regarding the long-term resolution of trade tensions and their impact on global markets.