Analysts said negotiators meeting in Stockholm were likely to agree to another 90-day pause on tariffs and export controls, avoiding further escalation.

Top U.S. and Chinese economic officials resumed talks in Stockholm on Monday to resolve longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months.

What the market is looking for as US and Chinese trade negotiators meet this week is whether recent de-escalatory signals between the two superpowers will produce a further delay of steep tariffs.