Trump-Xi summit 2026: Key expectations and what markets are watching

The 2026 Trump-Xi summit is anticipated as a pivotal geopolitical event for financial markets, with investors looking for signs of stabilization in US-China trade relations and technology restrictions. Key areas of focus include semiconductor export controls, AI technology access, and currency stability. The expected outcome is a limited "managed competition" framework rather than a comprehensive trade deal, which may lead to a temporary relief rally before markets shift attention back to inflation and Federal Reserve policies. Possible scenarios range from a limited trade truce to a breakdown in talks, impacting risk assets and market sentiment.