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China holds its ground as markets eye trade truce ahead of Trump-Xi summit

US president Trump and China president Xi will be meeting in Washington on 24 September this week. And from a markets perspective, I think the most interesting part isn't necessarily what gets signed. It is instead the position in which both leaders are negotiating from.On the one hand, China presid

Why it matters

FXI (China Large-Cap) · Why linked: Trade truce between US and China directly affects Chinese equities and trade-exposed sectors. Market context: Reduced tariff and trade uncertainty could lift Chinese equities and ease currency pressure.

KWEB (KraneShares China Internet) · Why linked: US-China trade and tech policy relations heavily influence Chinese internet and tech names. Market context: Easing trade tensions and a possible deal would support sentiment for Chinese tech and internet stocks.

USD/CNY (US Dollar / Chinese Yuan) · Why linked: Trade negotiations and truce expectations directly drive dollar-yuan dynamics. Market context: A trade truce tends to strengthen the CNY versus the USD as risk sentiment toward China improves.

SPY (SPDR S&P 500 ETF) · Why linked: A US-China trade truce removes a major overhang on US multinational earnings. Market context: Reduced global trade friction supports US equities, especially companies with China revenue exposure.

How SPY usually react

This story is too recent for its own reaction record — we score each asset against the actual price move 24h after publication. These are the long-run figures across every event we have tracked for them.

AssetEventsAvg max moveClosed lower
SPY10+0.67%70%

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