The week has become even trickier to predict, with talks between the U.S. and China now taking center stage, potentially complicating the picture for Europe.

Yet analysts say the Chinese leader is likely holding out for concrete deliverables before agreeing to the high-profile meeting. Trump dramatically escalated the trade war with the world's second-largest economy in April, rolling out sweeping new tariffs that prompted China to respond with its own export duties and other measures.

EU leaders Ursula von der Leyen and António Costa are expected to meet Chinese President Xi Jinping this week as geographical tensions intensify.

From just $2.4 billion in trade in 1975 to nearly $785 billion in 2024, China-EU economic relations have become one of the most vibrant engines of global growth. However, the ties have been disrupted by trade disputes. The issues of disagreement include tariffs on Chinese electric vehicles and China's export control on rare earth elements.

There were big trade talks in Beijing yesterday, where the EU raised concerns with China about trade imbalances.

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