Analysts at Rabobank note the cautiously optimistic sentiment observed over the past few sessions is evaporating quickly after China indicated that unless the U.S. changes its approach and shows sincerity, it would be pointless for U.S. officials to travel to Beijing for another round of trade talks.

• China’s hawkish rhetoric implies that it will be difficult to reach a trade deal as Beijing seems to be ready for a prolonged dispute with the US. Such prospects do not bode well for the EM assets.