After the trade talks between the United States and China ended, financial markets will reopen and it will be decided whether warm words are as effective as actions. President Donald Trump’s advisers announced that the negotiations had made “substantial progress”, but provided few details.
After two days of negotiations in Geneva, US Treasury Secretary Scott Bessent and Trade Representative Jamison Greer said they would share more information on Monday. Greer told reporters, “The differences may not be as big as imagined.” Chinese officials also expressed the same view at another briefing on Sunday, saying that the negotiations between the two sides have brought “good and sustainable development” to China-US relations.
Michael Brown, a senior research strategist at a well-known foreign institution based in London, said: “I think we will at least see some subconscious risk-taking moves because participants have reduced their risks before the negotiations. Now that we seem to have avoided the worst-case scenario of a breakdown in the negotiations and have indeed made some progress, they may be more willing to re-establish these positions. That being said, I think confidence will be lacking until we hear the specific details. At present, there are more questions than answers.”
The rally in Japan’s stock market slowed as investors assessed whether the trade tensions between China and the United States would ease after two days of negotiations over the weekend.
As of 11:21 a.m. Tokyo time, the Topix index was little changed at 2,733.02, ending an 11-day winning streak; the Nikkei 225 stock average rose 0.1% to 37,553.71.
Both China and the United States said they had made “substantial progress” after talks in Switzerland aimed at easing the trade war, but neither side announced specific measures. Chinese Vice Premier He Lifeng said the world’s two largest economies agreed to establish a mechanism for further consultations.
This meeting also raised hopes that Japan and Washington would reach an agreement on their bilateral trade negotiations, which have made little progress so far.
Kensuke Togashi, chief strategist at Daimatsu Asset Management, said: “The market is vaguely hoping that the US may reduce ‘reciprocal’ tariffs to the benchmark level within the next few months.”
The TOPIX index has limited upside as it has risen for 11 consecutive days, partly due to expectations of progress in Sino-US trade talks. Investors may adopt a wait-and-see attitude ahead of the release of the US consumer price index, he said. The US consumer price index for April will be released on Tuesday and is seen as a key indicator of how tariffs are affecting inflation.
Technical analysis:
Gold: Our plugin clearly warned that the liquidity in the 3261 yellow zone might be swept. Currently, after the price has dropped, it has temporarily stabilized. If there are any bullish signals in the future, you can try 1-2 times. There is approximately a 20-40 dollar space above, and the risk-reward ratio is sufficient. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and write “666” in the message.
Nasdaq: Last Friday, we suggested to execute a sell stop operation after the price broke down following the liquidity sweep in the upper yellow zone on the Nasdaq. However, in the early Asian session, the price gapped up and swept the liquidity without any pullback. The strategy for the yellow zone couldn’t be executed. Due to the improved sentiment, it’s necessary to pay attention to a potential secondary rebound after the price tests the demand zone during the North American session. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Crude oil: Due to Trump’s 90-day suspension of full reciprocal tariffs, the pressure on oil prices from recession concerns has been greatly alleviated. The plug-in clearly reminded of the buy stop operation in the blue area for crude oil last Friday. From the results, there were two entry opportunities in this area, and both could achieve a profit-loss ratio of 2.5 times. For today, we continue to pay attention to the bullish signal of price momentum breakthrough. For detailed positions, please consult the plug-in.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Today’s key economic data and events to focus on:
16:00 Deputy Governor of the Bank of England, Lombardelli, delivers a speech.
At 20:50, Mann, a member of the Monetary Policy Committee of the Bank of England, will deliver a speech.
