Investors are hopeful that U.S.-China trade talks this weekend will cool a trade war between the world's two largest economies and dispel some of the uncertainty clouding financial markets, though few expect a major breakthrough just yet.

The future of one of the world’s biggest trading relationships hangs in the balance after US President Donald Trump escalated the tariff war with China by imposing steep duties on imports from the country.

BEIJING/WASHINGTON (Reuters) -China and the United States start their first major Trade War Two meeting on Saturday to pull back from what analysts describe as a lose-lose situation for their economies, without much clarity on what a win would look like for either side.