A sustained trade truce between the US and China following the Trump-Xi summit, along with the reopening of the Strait of Hormuz, could significantly reduce global economic risks. This prospect offers welcome relief after a challenging period for the world economy.

<p>If Donald Trump and Xi Jinping's Beijing summit produces a sustained Sino-American trade truce and a path to reopening the Strait of Hormuz, that will give the world economy something it has lacked for the past year and half: a reduction in tail risks. In a year when so much has gone wrong, that is a welcome prospect.</p>