#TradeWarEases Negotiations between the USA and China — the two largest economies in the world — always have a significant impact on global markets. Here are the main possible consequences and expectations:

Impact on global markets:

1. Increased optimism in stock markets: News of 'substantial progress' in negotiations is usually perceived as a signal of de-escalation, which can lead to rising stock indices, especially in Asia and the USA.

2. Strengthening of emerging market currencies: A reduction in trade tensions can lower risks for emerging economies, stimulating capital inflows and strengthening their currencies.

3. Increased demand for commodities: Confidence in the recovery of trade flows can raise prices for oil, metals, and agricultural products.

4. Decreased volatility: Investors, feeling stability, may reduce demand for safe-haven assets (gold, US government bonds).