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

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.

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.