US-China Trade Talks Yield Framework Agreement

The US and China have agreed on a framework to de-escalate trade tensions after two days of negotiations in London between top officials. The deal, which still needs approval from Presidents Donald Trump and Xi Jinping, is expected to resolve restrictions on rare earth minerals and magnets. The talks followed a phone call between Trump and Xi, and come after a temporary truce was agreed in May, which both sides have since accused each other of breaching.

The US and China have reached a framework agreement on trade, subject to approval from their respective presidents, after high-level talks in London. The deal follows a breakthrough trade agreement in May that paused new tariffs for 90 days. US Commerce Secretary Howard Lutnick said the framework will implement the Geneva consensus and address issues such as Chinese restrictions on rare-earth exports to the US, which are expected to be resolved. The agreement is seen as a commitment to de-escalate tensions, but its success is uncertain and may be subject to further stops and starts.

The US and China have agreed to resume a trade truce after tensions escalated, with both sides agreeing to roll back punitive measures taken against each other's economies. The agreement, reached after two days of negotiations in London, is expected to be presented to leaders President Trump and China's Xi Jinping for final approval. The deal aims to return the relationship to the terms reached in Switzerland last month, which had unraveled due to China's restrictions on rare earth minerals and magnets. US Commerce Secretary Howard Lutnick said American concerns over China's restrictions had been resolved, and measures taken by the US in response would be reversed "in a balanced way."

US and Chinese officials have reached a "framework" agreement to move forward on trade after two days of talks in London, building on a previous deal struck in Geneva. The agreement is pending approval from US President Donald Trump and Chinese President Xi Jinping. The trade secretary, Howard Lutnick, expressed optimism that a dispute over China's export curbs on rare earth minerals and magnets will be resolved as part of the deal. China has agreed to ease restrictions on critical mineral exports, while the US is expected to remove some export restrictions it had put in place. The deal aims to ease the escalating tariffs war between the two economies.

A federal appeals court has allowed President Trump's tariffs on China and other US trading partners to remain in place while the administration appeals a lower court's ruling that the tariffs were illegal, with the government still needing to justify its use of emergency powers to impose the tariffs.

A US appeals court has ruled that Donald Trump's global tariffs can remain in effect for now, overturning a lower court's decision that had blocked them, and the case will be heard further on July 31.

U.S. stock futures slipped early Wednesday as investors awaited details on a trade policy consensus between the U.S. and China, as well as the release of May's consumer inflation report. Futures tied to the S&P 500, Nasdaq 100, and Dow Jones Industrial Average were down. U.S. and Chinese officials reached a trade consensus after two days of talks in London, with U.S. Commerce Secretary Howard Lutnick stating that he and U.S. Trade Representative Jamieson Greer would return to Washington to secure President Trump's approval. Investors are also anticipating the consumer price index report, with economists expecting a 0.2% month-over-month increase and a 2.4% year-over-year rise.

Asia-Pacific markets rose on Wednesday following news that the U.S. and China had reached a framework agreement on trade discussions, pending approval from the leaders of both countries. Mainland China's CSI 300 index climbed 0.77%, while Hong Kong's Hang Seng Index gained 0.9%. Japan's Nikkei 225 added 0.45%, and South Korea's Kospi index advanced 0.71%, nearing its highest level in 42 months. Australia's S&P/ASX 200 increased by 0.29% after hitting a new high. U.S. stock futures were near the flatline as investors awaited more insight on trade discussions and the release of May's U.S. consumer inflation report. Overnight, the Dow Jones Industrial Average rose 0.25%, the S&P 500 gained 0.55%, and the Nasdaq Composite added 0.63%. Investors also reacted positively to comments from Vikas Pershad, portfolio manager at M&G Investments, who cited China, India, and Japan as appealing long-term investment destinations due to their unique strengths.

The U.S. stock market appears to be overly optimistic, with the S&P 500 and Nasdaq Composite rising for the third consecutive day, despite uncertainty surrounding U.S. trade policies and tariffs. The S&P 500 is just 2% away from its all-time high, despite the looming expiration of a 90-day tariff pause and only one trade deal being reached with the U.K. Corporations are preparing for potential economic fallout, with companies like Google and Paramount announcing layoffs. The bond market may also put a check on investor enthusiasm, with key inflation readings and Treasury auctions this week potentially leading to higher yields and borrowing costs. Meanwhile, Tesla's shares rose 5.7% after CEO Elon Musk shared a video of the company's driverless vehicles, but Wells Fargo analysts predict a 63% drop in the stock due to weak sales.

Hong Kong stocks rose on Wednesday after US and Chinese officials announced a preliminary trade agreement following two days of talks in London. The Hang Seng Index gained 1% to 24,392.47, while the Hang Seng Tech Index rose 1.2%. Shares of BYD, Nio, and Xpeng advanced, with BYD gaining 3.2% after announcing it would cut bill-payment periods for suppliers to 60 days. Other major tech stocks, including Xiaomi and JD.com, also traded higher. The US-China trade deal is expected to be presented to both governments for final approval.