Sean Callow, analyst at Westpac, suggests that financial markets will of course be a lot more interested in bilateral meetings in the upcoming G20 meet, especially between US President Trump and Chinese President Xi.

“Recall risk appetite improved last week when President Trump tweeted that the pair would have “an extended meeting.” But the schedule from the White House allows only about 90 minutes for the meeting, before Trump is due to meet Turkey’s Erdogan. This raises the suspicion that the meeting will largely be a rubber stamp of a pre-agreed policy tweak. According to media reports, unless Trump has a last minute change of heart, “the truce cake seems to have been baked,” with the US to suspend the threat of 25% tariffs on the $300bn or so of China goods imports that are not already subject to tariffs. This is hardly the basis for a major improvement in the risk mood but is at least better than delivery of Trump’s 5 May declaration that the 25% tariffs would be imposed “shortly.”