Equities fluctuated on mixed US–China trade signals and a speech by the US Federal Reserve Chair, which suggested that the central bank may be ready to halt balance sheet reduction. This boosted small-cap stocks and non-technology sectors, while robust bank earnings added momentum. Asian markets rose, although China lagged due to data indicating persistent deflationary pressures. Gold reached new highs, whereas oil declined amid supply concerns. Sophie Altermatt, Macro & Next Generation Research, shares our perspective on the tense US–China trade negotiations.