Mizuho warns Trump- Xi summit may yield little but tech tensions remain the real risk

• The Trump-Xi summit is expected to yield little substantive outcome, with markets preferring formal arrangements over major breakthroughs.
• Ongoing technology war and rare earth restrictions are identified as key risks, potentially eroding margins for US tech companies over the next 12-18 months.
• China's export sector demonstrates high competitiveness and diversification beyond the US, making it resilient to trade pressures.
• The Chinese Yuan (CNY) is technically poised for significant appreciation against global currencies, which could be the most notable outcome of the trade discussions.

Sean Darby of Mizuho Securities discusses the Trump-Xi summit, anticipating minimal substantive outcomes but persistent tech tensions and rising rare earth prices impacting US tech margins. He highlights China's robust export competitiveness and predicts a significant appreciation of the Chinese Yuan post-summit.