The United States and China are poised to start a fresh round of talks in Sweden, aiming to extend a temporary trade truce that held back triple-digit tariffs while the world’s two biggest economies try to broker a lasting deal.

Washington and Beijing are on a "creeping path towards some kind of a deal", former US ambassador to China Nicholas Burns said on Tuesday, while offering some rare support for US President Donald Trump's tariff strategy towards China.

In the wake of the Trump administration’s trade deal with the European Union, investors have turned to watching for other agreements ahead a deadline at the end of this week — and they’re looking for progress in talks with China,