Markets Mixed as China–US Talks End, Focus Shifts to Tech and Fed

Asian markets saw a mixed performance on Wednesday, as investors closely monitored developments in China–US trade relations, while also preparing for major tech earnings reports and a closely watched Federal Reserve policy decision.

Trade Talks Between China and the US: A Pause Without Progress

Following trade agreements between the United States and both Japan and the European Union, focus has now shifted to talks with China. The latest round of negotiations in Stockholm concluded without a formal resolution, although both parties expressed optimism about extending the current truce.

“Progress on a further extension remains the well-subscribed base case, but Trump holds the final call on that,” said Chris Weston of Pepperstone. “There is still ample time until we reach the deadline of 12 August.”

US Trade Representative Jamieson Greer confirmed that President Donald Trump would make the “final call” on any decision, while Treasury Secretary Scott Bessent described the talks as “very constructive.”

Despite the uncertainty, markets appear to have priced in a 90-day extension of the current trade ceasefire, though unease persists, especially with countries like Brazil and India yet to secure deals. Trump hinted that India could face tariffs between 20–25%, criticising its high trade barriers.

Market Snapshot (as of 02:30 GMT)

Focus on Tech Giants

Investors are now awaiting key earnings reports from several technology heavyweights:

• Meta and Microsoft report on Wednesday
• Apple and Amazon follow on Thursday

“It’s been a solid US reporting season so far, but these mega-cap names need to really impress, given the bar has been raised,” added Weston.

Beyond earnings, attention will be directed to forecasts, particularly regarding how tariffs and heavy investments in artificial intelligence are expected to impact future performance.

Federal Reserve Decision Looms

The Federal Reserve is widely expected to hold interest rates steady in its latest policy meeting. However, analysts are keenly watching for signals of a potential rate cut in September, following softening economic indicators, especially in the labour market.

Oil Prices Continue Rally

Oil prices extended Tuesday’s gains—their largest in six weeks, according to Bloomberg News—buoyed by Trump’s renewed threat of sanctions against Russia if no progress is made in talks over the Ukraine conflict.

Markets continue to balance cautious optimism over trade talks with concerns over global economic headwinds and geopolitical risks. The coming days, particularly with tech earnings and Fed comments, are expected to set the tone for short-term market direction.