Global Markets Steady Amid U.S.-China Trade Talks and Fed Decision Anticipation

Global markets remained stable, with stock gains held and oil prices rising ahead of U.S.-China trade talks. Despite a fourth-day fall in the dollar, European stocks saw declines as caution lingered over tariffs before a Federal Reserve rate decision. Upcoming meetings aim to ease trade tensions.

On Wednesday, global stocks largely held their recent gains with oil prices seeing an uptick, buoyed by news of impending discussions between top trade officials from the U.S. and China. Despite these developments, the dollar fell for a fourth consecutive session while European stocks witnessed a decline, reflecting apprehensions surrounding a potential tariff agreement ahead of an impending Federal Reserve interest rate decision.

U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer plan to meet with China's leading economic official, aiming to take initial steps towards resolving the ongoing trade war that has unsettled the global economy. Bessent indicated a focus on de-escalation, while China remained reserved, citing a proverb that emphasizes actions over words.

As the Federal Reserve prepares for its rate-setting meeting, with markets not anticipating a change, market dynamics remain sensitive. European stocks fell slightly, and the dollar's decline continued, a trend attributed to the uncertainty preceding Federal Reserve meetings. Financial markets continue to be on edge as various economic factors, including previous tariff announcements and political influences on the Fed, play out.

(With inputs from agencies.)