The United States and China are carrying out high-level diplomatic talks in Geneva, Chinese state-run media reported from the Swiss capital on Saturday.

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.

American and Chinese officials have started talks in Switzerland to de-escalate a trade dispute between the world's two biggest economies that has global implications. There is hope that the countries can scale back the tariffs they have slapped on each other's goods,