US Bessent: Xi said that he could agree to US-China consensus reached in Malaysia

💡 DMK Insight

The recent dialogue between Trump and Xi, particularly the agreement to halve the fentanyl tariff, signals a potential thaw in U.S.-China relations, which could have significant implications for markets. Traders should pay attention to how this development might influence broader economic indicators, especially in sectors tied to trade and commodities. A reduction in tariffs could lead to increased trade volumes, impacting currencies like the Chinese yuan and the U.S. dollar. Additionally, commodities linked to the fentanyl supply chain may see volatility as the market adjusts to these new agreements. While this news might seem incremental, it reflects a shift in diplomatic tone that could set the stage for more substantial economic cooperation down the line. However, it’s worth noting that skepticism remains; previous agreements have often fallen short of expectations. Traders should keep an eye on upcoming economic data releases and any further developments in U.S.-China relations, particularly how they might affect trade balances and currency strength in the coming weeks.