Investor reaction to US-China progress in trade talks

Reuters

Sun, May 11, 2025, 12:37 PM 3 min read

NEW YORK (Reuters) -U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer said connected Sunday they reached a woody with China to chopped the U.S. commercialized deficit, describing "substantial progress" successful high-stakes talks with Chinese officials but offering nary details arsenic 2 days of negotiations concluded successful Geneva.

CHRISTOPHER HODGE, CHIEF ECONOMIST, U.S., NATIXIS, NEW YORK

“A de-escalation was inevitable and I deliberation it’s wide determination won’t beryllium overmuch durable that comes retired of these talks. Perhaps a lowering of tariffs and a acquisition statement for immoderate agriculture products, conscionable similar the signifier 1 deal. But thing that volition dramatically unfastened up Chinese markets for U.S. products oregon alteration the quality of the trading relationship. I deliberation we tin instrumentality the left-tail risks disconnected the table, but erstwhile each is said and done tariffs volition inactive beryllium dramatically higher and volition measurement connected U.S. growth."

JACK ABLIN, FOUNDING PARTNER AND CHIEF INVESTMENT OFFICER, CRESSET CAPITAL, CHICAGO

"It's evidently affirmative headlines, we are going to perceive much tomorrow. I'm not definite I would deed the 'buy' fastener connected what we person heard today, but if we tin marque substantive advancement with China I deliberation the marketplace volition similar it."

"To me, this quality is somewhat amended than expectations. I deliberation astir of america astatine the extremity of past week thought that determination would beryllium immoderate advancement made."

"I did not expect a decision to the talks conscionable due to the fact that the full portfolio of goods and services is truthful broad. ... But it sounds similar we are going to instrumentality a commercialized warfare with China disconnected the table."

ERIC KUBY, CHIEF INVESTMENT OFFICER, NORTH STAR INVESTMENT MANAGEMENT CORP., CHICAGO:

"This is simply a measurement successful the close direction, showing that some sides are funny successful coming to a constructive decision and make a amended commercialized relationship. The details are rather sketchy, but I deliberation the absorption sounds to beryllium much cooperative alternatively than combative, and I deliberation that we person to presumption that arsenic a positive.

"There were a assortment of imaginable outcomes of this weekend's meetings, ranging from some sides walking retired and pointing the digit astatine the different broadside to announcing that the other tariffs person been taken disconnected the table. What we got present was thing much successful the middle, but much towards the affirmative side. So I deliberation this is simply a measurement successful the close direction. It is not apt to trigger a melodramatic marketplace rally, but it's surely besides not going to make immoderate selling pressure."

GENNADIY GOLDBERG, HEAD OF US RATES STRATEGY, TD SECURITIES, NEW YORK: