#TradeWarEases

Trade tensions between the US and China seem to be easing, with recent developments sparking optimism in financial markets. Here's what's happening ¹ ²:

- *US-China Trade Talks*: The two countries have reportedly made progress in their trade negotiations, with both sides touting "progress" and "important consensus" reached during weekend talks. A joint statement is expected soon.

- *Market Reaction*: Oil prices have surged, with Brent crude futures climbing 0.4% to $64.18 a barrel and US West Texas Intermediate (WTI) crude futures advancing 0.5% to trade at $61.30 a barrel.

- *Tariff Adjustments*: The US has eased some tariffs, including auto tariffs, amid ongoing trade tensions. This move has contributed to market stability, with Asian markets responding positively.

- *Economic Impact*: Experts believe that easing trade tensions could boost economic activity, spur energy consumption, and stabilize financial markets. However, some caution that gains might be capped by factors like OPEC+ supply decisions and geopolitical negotiations.

*Key Factors to Watch*:

- *OPEC+ Supply Decisions*: Plans to increase oil output in May and June could impact market sentiment.

- *Geopolitical Developments*: US-Iran nuclear deal talks and other regional developments could influence oil prices.

- *Trade Agreement Details*: The specifics of the US-China trade deal will be crucial in determining market reactions and economic impact.