Geopolitics, trade to guide markets this week

GEOPOLITICS and trade talks are likely to hold investors' attention this week.

Of particular interest will be the next round of trade talks between the US and China, which will see US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin leading a trade delegation to Beijing on Thursday for two-day negotiations with the Chinese side.

The talks come at a time of growing concern with economic weakness in the US, though the Federal Reserve's dovish stance on interest rate hikes should lessen pressure on American companies and the economy.