US-China Talks In The Works – Europe Market Wrap

US stock futures rose and the dollar snapped three days of declines as China and the US prepared to hold their first confirmed trade talks since President Donald Trump unleashed his global tariff war.

Futures contracts for the S&P 500 and Nasdaq 100 rose about 0.6% after US and Chinese officials announced they will meet this week in Switzerland. Treasury Secretary Scott Bessent told Fox News the meeting will focus on de-escalation rather than reaching a deal, but said the current tariff rates aren’t sustainable.

The dollar index rose 0.2% on news of the US-China trade talks, while gold and Treasuries fell as demand for haven assets ebbed. Traders also awaited a Federal Reserve meeting later on Wednesday, where officials are expected to hold interest rates unchanged but could offer clues on this year’s monetary-easing path.

Sentiment was also lifted by a reduction in China’s policy rate, as Beijing unveiled several measures to support its economy. In Europe, the Stoxx 600 benchmark slipped 0.4%, tracking Wall Street’s weaker close on Tuesday.