The 2026 Trump-Xi summit is viewed as a critical geopolitical event for financial markets, with investors primarily seeking signs of stabilisation in US-China trade relations, technology restrictions, and broader geopolitical tensions.
Markets are focused on potential progress in semiconductor export controls, AI technology access, Taiwan-related communication channels, and currency stability, as even modest diplomatic improvements could support risk assets and Asian equities.
The most likely market outcome remains a limited "managed competition" framework rather than a comprehensive trade deal, which could trigger only a temporary relief rally before markets refocus on inflation, oil prices, and Federal Reserve policy risks.
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By Kelvin Wong
Today’s two-day meeting between Donald Trump and Xi Jinping in Beijing is shaping up to be one of the most consequential geopolitical events for global markets in 2026
