Will there be an agreement between the US and China? Markets are rising after news from Asia

From Asian stocks to bitcoin, oil and US index futures – markets woke up on Monday with a clear upward trend, following weekend reports about a possible breakthrough in negotiations between Washington and Beijing. The meeting between Donald Trump and Xi Jinping may take place as early as next Thursday.

On Monday, October 27 at At 8:00 a.m., futures contracts for the American S&P500, Nasdaq100 and Down Jones Industrial indices were gaining 0.86%, 1.11% and 0.69%, respectively. There was also strong optimism on the Asian markets, where the Japanese Nikkei and the South Korean Kospi gained around 2.50%. The main index of the Tokyo Stock Exchange exceeded 50,500 points for the first time in history.

The main trading floors in mainland China and Hong Kong gained just over 1%. The Shanghai Composite Index rose at 8:00 by 1.18% and reached the highest level in 10 years, approaching the crossing of 4,000 points. Hang Seng was up 1.07% during this time.

The last 24 hours also brought strong increases on the cryptocurrency market. Bitcoin price returned above $115,000 per unit and was gaining on a 24-hour basis at 8:00 a.m. 3.6%. Altcoins performed even better, led by ether, which rose by 7.5%, returning to above $4,200.

Will Trump reach an agreement with Xi? “Very good frames”

Monday's gains in the markets are the result of weekend reports about a possible breakthrough in US-Chinese trade negotiations. US President Donald Trump is expected to meet Chinese leader Xi Jinping on Thursday, October 30 in South Korea.

Relations between the two countries have become tense after Beijing introduced tighter controls on the export of rare earth metals and their products. Trump responded to this move by threatening to increase tariffs on imported goods from China by an additional 100% above existing rates. Beijing threatened further escalation. However, the tensions between the two capitals did not last long.

On Sunday, October 26, preparatory talks between the US and Chinese delegations took place in Malaysia, which, according to US Finance Minister Scott Bessent, were to create a “very good framework” for concluding a trade agreement during the meeting of President Donald Trump and the leader of the PRC, Xi Jinping.

Asked by reporters whether he expected the U.S. to follow through on Trump's threat to impose 100 percent tariffs on Chinese goods, Bessent replied: “no, I don't expect that, and I also anticipate that we will get the kind of deferral of rare earth export controls that the Chinese have been talking about.”

Donald Trump also expressed his optimism regarding the talks, saying on Sunday that he was optimistic about reaching an agreement with Beijing and expected further meetings in China and the United States. “I think we will conclude an agreement with China,” said the US president. “We will meet them later in China and we will meet them in the US, in Washington or Mar-a-Lago,” he added.

Prepared by MM

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