U.S. Treasury Secretary Bessent met with Chinese Vice Premier He Lifeng in a discussion characterized as candid and comprehensive, marking a rare high-level economic dialogue amid ongoing bilateral tensions. The talks, which included coordination around former President Trump’s upcoming trip to China, may signal a temporary thaw in relations, potentially supporting risk appetite and reducing safe-haven demand for the U.S. dollar. Improved Sino-American communication channels could ease concerns over further trade restrictions or financial decoupling, benefiting Chinese equities and broad EM assets sensitive to U.S.-China policy dynamics. The market’s focus will now shift to the timing and agenda of Trump’s visit, which could influence pre-election rhetoric and policy signaling on tariffs or technology controls. Traders will also monitor upcoming U.S. CPI data for clues on whether improved diplomatic tone reduces pressure on the Fed to maintain restrictive policy.
US TREASURY SECRETARY BESSENT HELD A MEETING TODAY WITH CHINA'S VICE PREMIER HE LIFENG IN WHAT WAS DESCRIBED AS A CANDID AND COMPREHENSIVE EXCHANGE, WITH THE TWO ALSO DISCUSSING TRUMP'S UPCOMING TRIP TO CHINA.…
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