The financial market is anxiously waiting for positive news that would allow avoiding an escalation of the trade war. But no concrete news had been communicated yet at 21:15 Swedish time.
At that time, the delegations had taken a break of over two hours in the talks, but were expected to sit down together again at 21:00 Swedish time, according to a source with insight into the news agency Bloomberg.
“A good meeting”
The talks are primarily centered around trade restrictions – where the Trump administration has tightened the possibility of exporting advanced technical equipment to China, while China has restricted the flow of rare minerals to the US.
The meeting on Tuesday began shortly before lunch, local time, and follows Monday's round of talks between the parties in the same location, Lancaster House in central London.
A good meeting, said US Treasury Secretary Scott Bessent, who leads the American delegation, late on Monday.
On Tuesday evening, Bessent left to testify in Congress on Wednesday. But Lutnick and trade representative Jamieson Greer are staying and the talks continued until 23:00 Swedish time.
Risk premiums can be lowered
From the White House, US President Donald Trump filled in that he only gets positive reports from London about the talks with China, but with the addition that China is not easy to deal with.
A breakthrough would likely give a significant stock market boost to stocks that have been pressured by concerns about the effects of the trade war between the US and China.
It would likely also lift the heavily depressed dollar and perhaps even lower the unusually high risk premium that has been placed on American long-term loans as a result of the US's budget and trade policy since Trump took office in January.
