The U.S. and China concluded talks in Geneva. The official outcome is expected Monday. Here are 3 likely scenarios:
✅ Positive outcome (most likely)
Phased tariff reductions, China to increase U.S. imports, and a constructive tone from both sides.
📈 Markets: S&P, BTC, and commodities rise.
📉 DXY weakens, gold neutral.
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⚖️ Neutral outcome
Vague language like “ongoing dialogue,” with no specific steps.
📉 Markets: profit-taking, slight pullback in BTC and equities.
📈 DXY stable or rising.
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❌ Negative outcome (unlikely)
Talks fail. U.S. keeps tariffs, blames China.
📉 S&P and crypto sell off.
📈 Gold and USD rally.
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🎯 Most likely: a statement with details (tariff % or import commitments) will be published early Monday (NY/EU time).
→ If numbers are clear: bullish signal.
→ If it’s just diplomacy: disappointment likely.
📊 Expect volatility. Prepare for a sharp move.