All eyes will be on US President Donald Trump and China’s President Xi Jinping next week as investors are desperate for any signs of a thaw in US-China relations even if it shifts expectations for much awaited Federal Reserve interest rate cuts.
The S&P 500 closed at a record high after the US central bank said it was ready to cut rates if needed in the face of growing risks including the US-China trade war. The benchmark index was volatile on Friday as hopes of trade progress offset concerns about US-Iran tensions.
To extend the rally, one requirement will be friendly talks between the leaders of the world’s two biggest economies. They are expected to meet in Japan on the sidelines of a Group of 20 (G20) summit next week. US-
China negotiations spectacularly broke down in early May after Trump accused China of retreating from previous commitments, causing a market sell-off. Trump then slapped 25 percent tariffs on $200bn of Chinese imports to the US and threatened 25 percent tariffs on another $325bn of Chinese goods.
