The Sino-US talks have made substantial progress, with US stock futures rising by more than 1%, offshore RMB rising by nearly 200 points, and gold fell by more than US$40

Wall Street Journal Report  

**U.S.-China Trade Consensus Boosts Short-Term Optimism: U.S. Stock Futures Rise, Dollar and RMB Strengthen in Tandem**  

The breakthrough in U.S.-China trade talks has fueled short-term market optimism, driving gains in U.S. stock futures while both the U.S. dollar and the Chinese yuan strengthened, with the offshore yuan surging by 100 pips. Safe-haven demand notably receded, hammering both 10-year Treasury yields and gold prices. However, investors remain focused on the details of the joint statement—should it fall short of expectations, asset trends could swiftly reverse.  

**Substantial Progress in Trade Talks Announced**  

According to CCTV News, Chinese Vice Premier He Lifeng, head of China's trade negotiation team, stated at a press conference on the evening of the 11th local time that the high-level talks were "candid, in-depth, and constructive," yielding significant consensus and "substantive progress." Both sides agreed to establish a bilateral trade consultation mechanism, with details to be finalized soon. A joint statement will be released on May 12.  

**Market Awaits Key Details**  

The May 12 joint statement is under intense scrutiny, as traders seek clarity on the talks' specifics. Michael Brown, an analyst at Pepperstone, noted, "We’ll likely see at least a knee-jerk risk-on reaction, given participants had dialed back exposure pre-talks. With the worst-case scenario (a breakdown) avoided and some progress made, they may now be more willing to re-enter positions. But confidence could remain fragile until concrete details emerge—right now, there are more questions than answers."  

Commentator Charles Gasparino echoed caution, suggesting markets may be overly optimistic pending the statement’s specifics. Pessimistic investors warn that unless the statement explicitly addresses tariff rollbacks, adverse effects—such as rising inflation, empty store shelves, climbing unemployment, and small-business failures due to supply chain disruptions—could trigger a sharp market reversal.  

**Asia-Pacific Session Sees Risk-On Sentiment**  

During Monday’s Asia-Pacific trading, short-term risk appetite surged:  

- S&P 500 and Nasdaq 100 futures rose over 1%.  

- The U.S. dollar index gained 0.18% at press time.  

- The offshore yuan appreciated nearly 200 pips.  

- Safe-haven assets retreated sharply, with the 10-year Treasury yield up 3.6 basis points and gold plunging over $40.  

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