Markets eye US-China talks and rebound in sentiment
🌍 US-UK Pact Lifts European Markets
The FTSE 100 and broader European stocks climbed on Friday as investors digested the newly signed trade deal between Britain and the United States.
The agreement, announced Thursday, boosted hopes for stronger transatlantic economic ties amid a complex global trade environment.
Derren Nathan, head of equity research at Hargreaves Lansdown, noted that the joint diplomatic push from President Trump and UK Prime Minister Keir Starmer, spanning from Washington to Solihull, has “ignited a faint spark of optimism in equity markets.”
The timing—aligned with VE Day commemorations—appeared crafted to highlight the historic alliance between the two nations.
🇨🇳 US-China Talks and China’s Trade Picture in Focus
Adding to the cautious optimism, US and Chinese officials are set to resume talks in Switzerland this weekend—potentially laying groundwork to ease their long-running trade war.
Meanwhile, fresh data from China showed exports grew 8.1% year-over-year in April, a slowdown from 12.4% in March.
However, exports to the US plunged over 20%, reflecting the sting of Trump’s steep tariffs.
🔚 Conclusion: Fragile Optimism as Trade Winds Shift
While Thursday’s US-UK trade deal wasn’t enough to stave off declines on the FTSE 100 yesterday, it revived sentiment this morning.
With US-China trade talks back on the agenda and signs of resilient Chinese exports, investors are cautiously hopeful that the tide may turn for global trade relations.
Bottom line:
Markets are buoyed by diplomacy, but geopolitical risks still loom large. Investors will be watching closely for concrete outcomes from this weekend’s US-China discussions.
