Markets Rebound as Hopes Rise for U.S.-China Trade Talks Amid Global Economic Concerns

Global stock markets rebounded strongly on Friday following signs that the United States and China may return to the negotiating table to ease trade tensions. China’s commerce ministry signaled its openness to dialogue, noting the U.S. had repeatedly shown willingness to talk, a gesture that boosted investor confidence across Asia, Europe, and the U.S. This renewed optimism came after disappointing earnings from tech giants Apple and Amazon had stoked fears about the deepening economic impact of the trade war.

U.S. markets showed immediate response, with the Dow, S&P 500, and Nasdaq all registering gains. Futures pointed to continued strength, while European markets also looked set for a strong open. Asian indices rose sharply, with Taiwan, Hong Kong, and Japan leading the charge. Despite concerns about Trump’s unpredictable tariff strategies, the market appeared to focus on the potential for resumed diplomacy as a positive signal.

However, analysts warned that uncertainty remains. While China extended an olive branch, it maintained a cautious tone, stressing that meaningful talks depend on U.S. sincerity. Meanwhile, economic data revealed contraction in both the U.S. and Chinese economies, reflecting the real-world toll of the tariff disputes. Experts like Joseph Capurso noted that a recession is not inevitable but could result if consumer spending and business investment falter.

Currency and commodity markets also reacted to the news. The Japanese yen dipped before slightly recovering, while the Bank of Japan held interest rates and warned of ongoing tariff-related risks. Oil prices rose on geopolitical tensions and trade optimism, and gold ticked higher despite a weaker weekly showing. With nonfarm payrolls due soon and U.S.-Japan trade talks underway, the global financial system remains on edge, watching for signs of stability or further turbulence.

Source: Reuters