Cautious investors watch on as the U.S. and China resume trade talks that could largely impact the global market if the parties don't arrive on the same ground within 90 days.
Six cabinet members, headed by deputy U.S. Trade Representative Ambassador Jeffrey Gerrish, are in Beijing to resume talks on how the trade issue should be resolved. While both sides seem to be looking at positive results, there has been no clear resolution. Investors from across the globe are still adamant about the negotiations, according to Forbes.
Craig Birk, chief investment officer at Personal Capital San Francisco, told the outlet, "I don't think this week puts an end to tariffs, but I do think the trade talks will be positive. Both sides need something good to come out of this."
U.S. President Donald Trump has previously stated that his country has the upper hand in the trade war. While there is no confirmation to his statements, the tariff truce has reportedly led to unemployment in China, including layoffs in a couple of tech companies.
Before trade issues between the U.S. and China dawned, Chinese tech companies dominated the global market but the trade war has started straining the once leading economic sector. The latest trade restrictions, as well as changes in economic practices, resulted in labor setbacks for tech groups.
During the first day, China's Vice-Premier Liu He made an appearance. For Chinese economic experts, this is the country's way of expressing optimism amid the tumultuous negotiations. However, The Economist Intelligence Unit's global chief economist, Simon Baptist, told CNBC's "Squawk Box" early Tuesday, "It still looks like we're talking more about superficialities...than some of the fundamental issues."
Analysts further recommend that China should initiate a reformation on its industrial policies so as to meet the standards of U.S. trade customs. Investors are now attentively waiting for progress before the tariff truce ends on March.
Meanwhile, stocks continue to fluctuate amid the trade war. Amazon reported a peak of over 3 percent while the Nasdaq Composite saw a rise of 1.26 percent. Stocks on the energy sect also advanced by 1.2 percent as the U.S. delivered a surge in oil prices.
It is widely expected that the global market will start settling down if there's any sign that the U.S.-China trade talks will come to an amicable agreement. Both countries have stated earlier that the parties are eager to work in unity to positively resolve the trade issues that trouble investors.
