Afp Business Asia

Asian stocks rose Wednesday as investors welcomed a China-US agreement to lower trade tensions that stoked hopes the economic superpowers will eventually reach a broader tariff deal.After two days of high-profile, closely watched talks in London, the two sides said they had set up a framework to move towards a pact, following negotiations in Geneva last month that saw them slash tit-for-tat levies.The news provided some much-needed relief to markets after US President Donald Trump accused Beijing of violating that deal. The latest round of talks followed a phone call between Trump and his Chinese counterpart Xi Jinping on Thursday.As well as tariffs, a key issue in the discussions was China’s export of earth minerals and magnets used in a range of things including smartphones and electric vehicle batteries, while Beijing was keen to see an easing of restrictions on its access to tech goods.US Commerce Secretary Howard Lutnick said he was upbeat that concerns over rare earths “will be resolved” eventually, as the agreement is implemented.Xi and Trump must approve the framework first.”We’re moving as quickly as we can,” US Trade Representative Jamieson Greer told reporters. “We would very much like to find an agreement that makes sense for both countries,” he added.”We feel positive about engaging with the Chinese.”Speaking separately to reporters, China International Trade Representative Li Chenggang expressed hope that progress made in London would help to boost trust on both sides.The deal, which was reached late Tuesday, boosted Asian markets with Hong Kong and Shanghai among the best performers, while Tokyo, Sydney, Seoul, Wellington, Taipei and Manila were also up.However, analysts said investors would be keen to get a closer look at the details of the agreement.”The US-China trade circus wrapped with what can only be described as a diplomatic tautology,” said Stephen Innes at SPI Asset Management.He called it “a late-night announcement that both sides have ‘agreed in principle on a framework to implement the Geneva consensus’ — a consensus that was… already agreed upon weeks ago”.And he warned that markets could run out of steam if nothing concrete came through.”If the next headline doesn’t come with something tangible, such as cargo ships loaded with rare earths or an actual rollback of tariffs, expect risk assets to start demanding more photo opportunities,” he wrote.”Until then, this rally relies on faith.”And Saxo chief investment strategist Charu Chanana said before the deal was announced that while there was some hope for the talks “the era of easy wins — tariff pauses and minor concessions — is over”.”What’s left are deeper, more entrenched challenges: tech restrictions, rare earth supply chains, student visas, and national security-linked concerns. These are strategic disputes, unlikely to be resolved in a few rounds of meetings.”Still, she did say that “trade uncertainty has clearly faded since the peak chaos of early April”, when Trump unleashed a tariff blitz that hammered worldwide stock and bond markets.Tuesday’s news also overshadowed the World Bank’s slashing of its 2025 forecast for global economic growth to 2.3 percent, from the 2.7 percent predicted in January, citing trade tensions and policy uncertainty.It also said the US economy would expand 1.4 percent this year, half of its 2024 expansion.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 0.5 percent at 38,385.37 (break)Hong Kong – Hang Seng Index: UP 0.7 percent at 24,327.51Shanghai – Composite: UP 0.6 percent at 3,403.56Euro/dollar: DOWN at $1.1413 from $1.1426 on TuesdayPound/dollar: DOWN at $1.3481 from $1.3501Dollar/yen: UP at 145.03 yen 144.88  yenEuro/pound: UP 84.66 pence from 84.61 penceWest Texas Intermediate: DOWN 0.2 percent at $64.86 per barrelBrent North Sea Crude: DOWN 0.2 percent at $66.72 per barrelNew York – Dow: UP 0.3 percent at 42,866.87 (close)London – FTSE 100: UP 0.2 percent at 8,853.08 (close)

Nintendo said Wednesday it had sold a record 3.5 million Switch 2 units worldwide in the first four days after the console was launched.”This is the highest global sales level for any Nintendo hardware within the first four days,” the Japanese video game giant said in a statement.Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to Nintendo’s blockbuster Switch console.It was released last Thursday to a global swell of fan excitement that included sold-out pre-orders and midnight store openings.Since its 2017 launch, the original Switch — which enjoyed a popularity boost during the pandemic with hit games such as “Animal Crossing” — has sold 152 million units.That makes it the third best-selling console of all time.Analysts predicted last week that Nintendo could score record early sales with the Switch 2 — but it remains to be seen if it can match the performance of its predecessor.Challenges for Nintendo include uncertainty over US trade tariffs and whether it can convince enough people to pay the high price for its new device.The Switch 2 costs $449.99 in the United States, compared to a launch price of $299.99 for the original Switch.Both are hybrid consoles which can connect to a TV or be played on the go.New games such as “Donkey Kong Bananza” and “Mario Kart World” — which allow players to go exploring off-grid — are also more expensive than existing Switch titles.Nintendo forecasts it will sell 15 million Switch 2 consoles in the current financial year, roughly equal to the original in the same period after its release.The Switch 2 “is priced relatively high” compared to its predecessor, so it “will not be easy” to keep initial momentum going, the company’s president Shuntaro Furukawa said at a financial results briefing in May.The Switch 2 has eight times the memory of the first Switch, and its controllers, which attach with magnets, can also be used like a desktop computer mouse.New functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw for young audiences used to watching game streamers.Success is crucial for Nintendo: while the “Super Mario” maker is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say.

Top officials from the United States and China said Tuesday that they had agreed on a “framework” to move forward on trade, following two days of high-level talks in London to resolve tensions.US Commerce Secretary Howard Lutnick expressed optimism after a full day of negotiations that concerns surrounding rare earth minerals and magnets “will be resolved” eventually, as the deal is implemented.But this framework will first need to be approved by leaders in Washington and Beijing, officials said, at the end of meetings at the British capital’s historic Lancaster House.All eyes were on the outcomes of negotiations as both sides tried to overcome an impasse over export restrictions. US officials earlier accused Beijing of slow-walking approvals for shipments of rare earths.The world’s two biggest economies were also seeking a longer-lasting truce in their escalating tariffs war, with levies currently only temporarily on hold.”We’re moving as quickly as we can,” US Trade Representative Jamieson Greer told reporters.”We would very much like to find an agreement that makes sense for both countries,” he added, noting that the relationship was complex.”We feel positive about engaging with the Chinese,” he maintained.Speaking separately to reporters, China International Trade Representative Li Chenggang said: “Our communication has been very professional, rational, in-depth and candid.”Li expressed hope that progress made in London would help to boost trust on both sides.- Productive talks -US Treasury Secretary Scott Bessent earlier described the closely-watched trade talks as productive, although scheduling conflicts prompted his departure from London with negotiations still ongoing.Bessent, who led the US delegation with Lutnick and Greer, left early to return to Washington for testimony before Congress, a US official told AFP.Chinese Vice Premier He Lifeng headed his country’s team in London, which included Li and Commerce Minister Wang Wentao.Both sides do not yet have another gathering scheduled.But Lutnick said Tuesday that US measures imposed when rare earths “were not coming” would likely be relaxed once Beijing moved forward with more license approvals.Global stock markets were on edge, but Wall Street’s major indexes climbed on hopes for progress earlier Tuesday.The London negotiations follow talks in Geneva last month, which saw a temporary agreement to lower tariffs.This time, China’s exports of rare earth minerals — used in a range of things including smartphones, electric vehicle batteries and green technology — were a key issue on the agenda.”In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,” US President Donald Trump’s top economic adviser, Kevin Hassett, told CNBC on Monday.Even though Beijing was releasing some supplies, “it was going a lot slower than some companies believed was optimal”, he added.- ‘Mirror arsenal’ -Both countries “have developed almost a mirror arsenal of trade and investment weapons that they can aim at each other,” said Emily Benson, head of strategy at Minerva Technology Futures.As they tap economic tools to try and shift global power structures, she told AFP, it may not be reasonable to expect a typical trade and investment deal.But both sides could find ways to level off a downward spiral.A dialing-down of temperatures could involve Chinese efforts to shore up the process for granting export control licenses, Benson said. She noted Beijing appeared understaffed given the volume of requests.On the US side, this could look like a relaxation of certain export curbs in the high-tech domain, she added.But observers remained cautious, with Thomas Mathews of Capital Economics warning that Washington was unlikely to “back off completely.” This could weigh on markets.Since returning to office, Trump has slapped a 10 percent levy on friend and foe, threatening steeper rates on dozens of economies.His tariffs have dented trade, with Beijing data showing Chinese exports to the United States plunged in May.The World Bank on Tuesday joined other international organizations to slash its 2025 global growth forecast amid trade uncertainty.China is also in talks with partners including Japan and South Korea to try to build a united front countering Trump’s tariffs.

US Treasury Secretary Scott Bessent on Tuesday described closely watched trade talks with Chinese officials as productive, as scheduling conflicts prompted his departure from London with negotiations ongoing.Top officials from the world’s two biggest economies held a second day of trade talks Tuesday at the UK’s historic Lancaster House, with meetings stretching into the night.All eyes are on the outcomes as both sides try to overcome an impasse over export restrictions, with US officials earlier accusing Beijing of slow-walking approvals for shipments of rare earths.Bessent left the meetings early to return to Washington for testimony before Congress, a US official told AFP.But US Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer, who were also part of the delegation, would further talks as needed with Chinese counterparts, the offical said.Earlier Tuesday, Lutnick told Bloomberg Television that the negotiations were “going well”.Global stock markets were on edge, although Wall Street’s major indexes climbed on hopes for progress.With meetings dragging on, “the lack of positive headlines weighed on stocks,” said Kathleen Brooks, research director at XTB trading platform.US President Donald Trump told reporters Monday: “We are doing well with China. China’s not easy.”The London negotiations follow talks in Geneva last month, which saw a temporary agreement to lower tariffs.This time, China’s exports of rare earth minerals — used in a range of things including smartphones, electric vehicle batteries and green technology — are expected to dominate the agenda.”In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,” Trump’s top economic adviser, Kevin Hassett, told CNBC on Monday.Even though Beijing was releasing some supplies, “it was going a lot slower than some companies believed was optimal”, he added.”Our expectation is that after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume,” Hassett said.- ‘Mirror arsenal’ -Both countries “have developed almost a mirror arsenal of trade and investment weapons that they can aim at each other,” said Emily Benson, head of strategy at Minerva Technology Futures.As they tap economic tools to try and shift global power structures, she told AFP, it may not be reasonable to expect a typical trade and investment deal from talks.But both sides could find ways to level off a downward spiral.Tensions between Washington and Beijing have heightened since Trump took office in January, with the countries engaging in a tariffs war.The Geneva pact temporarily brought new US tariffs on Chinese goods down from 145 percent to 30 percent, and Chinese countermeasures from 125 percent to 10 percent.But Trump later said China had “totally violated” the deal.A dialing-down of temperatures could involve Chinese efforts to shore up some export control licenses caught in their system, Benson said. She noted Beijing appeared understaffed given the volume of requests.On the US side, this could look like a relaxation of certain export curbs in the high-tech domain, she added.But observers remain cautious.”We doubt that the US will back off completely. That’s likely to restrain any relief rally,” said Thomas Mathews, head analyst of Asia Pacific markets for Capital Economics.Since returning to office, Trump has slapped a 10 percent levy on friend and foe, threatening steeper rates on dozens of economies.His tariffs have dented trade, with Beijing data showing Chinese exports to the United States plunged in May.The World Bank on Tuesday joined other international organizations to slash its 2025 global growth forecast amid trade uncertainty.Meanwhile, China is in talks with partners including Japan and South Korea to try to build a united front countering Trump’s tariffs.Chinese Vice Premier He Lifeng is heading the team in London, which includes Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang.Bessent, Lutnick and Greer are leading the American delegation.

Global stock markets moved indecisively Tuesday as investors waited for the outcome of US-China talks aimed at cementing a fragile trade war truce between the world’s two biggest economies.A second day of high-level talks in London between the United States and China stretched into the evening Tuesday with no concrete announcements so far.US equities finished higher following a choppy session, while European ones closed in mixed territory, and Asia mostly closed down.US Commerce Secretary Howard Lutnick told Bloomberg Television that the talks were “going well” and that he expected Tuesday’s discussions to last “all day.”But FHN Financial’s Chris Low said Lutnick’s upbeat appraisal was offset by “a TikTok channel associated with Chinese television suggesting that there are still some significant differences between the two sides.”Analysts said that any positive sign of agreement would fuel a rise in equities — but that it could be restrained.”We wouldn’t bank on a big turnaround thanks to any potential trade breakthroughs,” said Thomas Mathews, head analyst of Asia Pacific markets for Capital Economics.”We doubt that the US will back off completely. That’s likely to restrain any relief rally,” he said.The talks were expected to be dominated by Chinese exports of rare earth minerals used in a wide range of products including smartphones, electric vehicle batteries and green technology. Beijing in return was looking for Washington to ease controls on its exports of sensitive electronic components.In Europe, Paris’s CAC 40 closed slightly up but Frankfurt’s Dax slipped well down.London’s FTSE 100 index closed higher after weak UK unemployment data raised the chances of the Bank of England cutting interest rates into next year, a move which often propels stock prices. It could reach a new record this week if it continues to gain.Shares in European Union markets, in contrast, could be weakened by the conspicuous lack of any deal between Washington and Brussels before a July 9 deadline for 50 percent US tariffs to take effect. Britain has already sealed an agreement.Investors are also awaiting key US inflation data this week, which could impact the Federal Reserve’s monetary policy.Analysts warn Trump’s tariffs will refuel inflation, strengthening the argument to keep interest rates on hold instead of lowering them when the Fed meets next week.Citing trade tensions and the resulting policy uncertainty, the World Bank lowered its 2025 projection for global GDP growth to 2.3 percent in its latest economic prospects report, down from 2.7 percent expected in January.The US economy is expected to grow by 1.4 percent this year, a sharp slowdown for the world’s biggest economy from a 2.8 percent expansion in 2024.- Key figures at around 2030 GMT -New York – Dow: UP 0.3 percent at 42,866.87 (close)New York – S&P 500: UP 0.6 percent at 6,038.81 (close)New York – Nasdaq Composite: UP 0.6 percent at 19,714.99 (close)London – FTSE 100: UP 0.2 percent at 8,853.08 (close)Paris – CAC 40: UP 0.2 percent at 7,804.33 (close)Frankfurt – DAX: DOWN 0.8 percent at 23,987.56 (close)Tokyo – Nikkei 225: UP 0.3 percent at 38,211.51 (close)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 24,162.87 (close)Shanghai – Composite: DOWN 0.4 percent at 3,384.82 (close)Euro/dollar: UP at $1.1426 from $1.1422 on MondayPound/dollar: DOWN at $1.3501 from $1.3551Dollar/yen: DOWN at 144.88 yen 144.57  yenEuro/pound: UP 84.61 pence from 84.27 penceBrent North Sea Crude: DOWN 0.3 percent at $66.87 per barrelWest Texas Intermediate: DOWN 0.5 percent at $64.98 per barrel

A second day of high-level talks between the United States and China stretched into the evening Tuesday, as officials gathered in London to defuse a bitter trade war that has been dragging on the global economy.Negotiators, who started meetings in the morning, held discussions during the day and took a break before an expected reconvening at 8:00 pm local time (1900 GMT), according to a US official.All eyes are on the outcomes of the talks as the world’s two biggest economies try to overcome an impasse over export curbs and come to a longer-lasting truce in their tariffs war.US Commerce Secretary Howard Lutnick earlier told Bloomberg Television that the talks were “going well”, expecting them to last “all day”.But global stock markets were on edge.With talks dragging on, “the lack of positive headlines weighed on stocks and the dollar,” said Kathleen Brooks, research director at XTB trading platform.One of US President Donald Trump’s top advisers said Monday that he expected “a big, strong handshake” after the meetings in the UK’s historic Lancaster House.Trump told reporters at the White House on Monday: “We are doing well with China. China’s not easy.”The negotiations began on Monday in London, coming after an earlier round of talks in Geneva last month.This time, China’s exports of rare earth minerals used in a wide range of things including smartphones, electric vehicle batteries and green technology are expected to dominate the agenda. “In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,” Trump’s top economic adviser, Kevin Hassett, told CNBC on Monday.Even though Beijing was releasing some supplies, “it was going a lot slower than some companies believed was optimal”, he added.”Our expectation is that after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume,” Hassett said.This marked a signal that the Trump administration might be willing to ease some recent curbs if China rolled back rare earths restrictions as well.- Concessions? -Tensions between Washington and Beijing have heightened since Trump took office in January, with both countries engaging in a tariffs war hiking duties on each other’s exports.The Geneva pact to cool temperatures temporarily brought new US tariffs on Chinese goods down from a staggering 145 percent to 30 percent, and Chinese countermeasures from 125 percent to 10 percent.But Trump recently said China had “totally violated” the deal.And analysts remain cautious.”We doubt that the US will back off completely. That’s likely to restrain any relief rally,” said Thomas Mathews, head analyst of Asia Pacific markets for Capital Economics.Ipek Ozkardeskaya, senior analyst at the Swissquote Bank, said although there had been “no breakthrough,” it seemed “the first day of the second round of negotiations reportedly went relatively well”.On what he dubbed “Liberation Day” in April, Trump unveiled sweeping levies of 10 percent on friend and foe alike, and threatened steeper rates on dozens of economies.The tariffs have dented trade, with official figures from Beijing showing Chinese exports to the United States in May plunged by 12.7 percent.China is also in talks with other trading partners — including Japan and South Korea — to try to build a united front to counter Trump’s tariffs.Chinese leader Xi Jinping on Tuesday urged South Korea’s new President Lee Jae-myung to work with Beijing to uphold free trade and ensure “the stability and smooth functioning of global and regional industrial and supply chains,” Xinhua news agency said.Chinese Vice Premier He Lifeng is heading the team in London, which included Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang.US Treasury Secretary Scott Bessent, Lutnick and US Trade Representative Jamieson Greer are leading the US delegation.

The United States and China huddled for a second day of talks in London on Tuesday, with Washington sending positive signals that the two superpowers might resolve a bitter trade war dragging on the global economy.The talks were “going well,” US Commerce Secretary Howard Lutnick told Bloomberg Television, adding he expected Tuesday’s discussions to last “all day”.Global stock markets were muted on Tuesday as investors awaited the outcome of the talks aimed at cementing a fragile truce in the trade war.With talks dragging on, “the lack of positive headlines weighed on stocks and the dollar,” said Kathleen Brooks, research director at XTB trading platform.But one of US President Donald Trump’s top advisers had said Monday he expected “a big, strong handshake” after the talks in the UK’s historic Lancaster House.Trump told reporters at the White House on Monday: “We are doing well with China. China’s not easy.”He added: “I’m only getting good reports.”The gathering of key officials from the world’s two biggest economies began Monday in London, after an earlier round of talks in Geneva last month.China’s exports of rare earth minerals used in a wide range of things including smartphones, electric vehicle batteries and green technology are expected to dominate the agenda. “In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,” Trump’s top economic adviser, Kevin Hassett, told CNBC on Monday.But even though Beijing was releasing some supplies, “it was going a lot slower than some companies believed was optimal”, he added.Still, he said he expected “a big, strong handshake” at the end of the talks.”Our expectation is that after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume,” Hassett added.He also said the Trump administration might be willing to ease some recent curbs on tech exports.- Concessions? -Tensions between Washington and Beijing have heightened since Trump took office in January, with both countries engaging in a tariffs war hiking duties on each other’s exports.The Geneva pact to cool tensions temporarily brought new US tariffs on Chinese goods down from a staggering 145 percent to 30 percent, and Chinese countermeasures from 125 percent to 10 percent.But Trump recently said China had “totally violated” the deal.And analysts remained cautious.”We doubt that the US will back off completely. That’s likely to restrain any relief rally,” said Thomas Mathews, head analyst of Asia Pacific markets for Capital Economics.Ipek Ozkardeskaya, senior analyst at the Swissquote Bank, said although there had been “no breakthrough” it seemed “the first day of the second round of negotiations reportedly went relatively well”.”Rumours are circulating that the US may be willing to make concessions on tech exports in exchange for China easing restrictions on rare earth metal exports,” she said.On what he dubbed “Liberation Day” in April, Trump slapped sweeping levies of 10 percent on friend and foe alike, and threatened steeper rates on dozens of economies.The tariffs have already dented trade, with official figures from Beijing showing Chinese exports to the United States in May plunged by 12.7 percent.China is also in talks with other trading partners — including Japan and South Korea — to try to build a united front to counter Trump’s tariffs.Chinese leader Xi Jinping on Tuesday urged South Korea’s new President Lee Jae-myung to work with Beijing to uphold free trade and ensure “the stability and smooth functioning of global and regional industrial and supply chains,” the Xinhua news agency said.Chinese Vice Premier He Lifeng is heading the team in London, which included Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang.US Treasury Secretary Scott Bessent, Lutnick and Trade Representative Jamieson Greer are leading the US delegation.

Global stock markets diverged on Tuesday as investors waited for the outcome of US-China talks aimed at cementing a fragile trade war truce between the world’s two biggest economies.US and European indices were mixed, and Asia mostly closed down, with analysts saying much was riding on the talks in London, which were in their second day.US Commerce Secretary Howard Lutnick told Bloomberg Television that the talks were “going well” and that he expected Tuesday’s discussions to last “all day”.With talks dragging on, “the lack of positive headlines weighed on stocks and the dollar,” said Kathleen Brooks, research director at XTB trading platform.Analysts said that any positive sign of agreement would fuel a rise in equities — but that could be restrained.”We wouldn’t bank on a big turnaround thanks to any potential trade breakthroughs,” said Thomas Mathews, head analyst of Asia Pacific markets for Capital Economics.”We doubt that the US will back off completely. That’s likely to restrain any relief rally,” he said.The talks were expected to be dominated by Chinese exports of rare earth minerals used in a wide range of things including smartphones, electric vehicle batteries and green technology.In New York, the broad S&P 500 index and the tech-heavy Nasdaq were both trading higher, but the blue-chip Dow was struggling.In Europe, Paris’s CAC 40 was barely higher, and Frankfurt’s Dax slipped.European shares could be weakened by the conspicuous lack of any deal between Washington and Brussels before a July 9 deadline for 50-percent US tariffs to take effect.Brooks said the upside for the dollar — which was weaker on Tuesday — was limited, depending on the scope of any US-China agreement.”For the dollar to meaningfully retrace some recent losses, we do not think that positive headlines will be enough,” she said.”A trade agreement with an actionable plan to get trade between the US and China flowing freely for the long term is the only way to stop the slide in the buck, in our view.”While other markets sputtered, London’s FTSE 100 index was on course to close at a record high after weak UK unemployment data raised the chances of the Bank of England cutting interest rates into next year, which often propels stock prices.Investors are also awaiting key US inflation data this week, which could impact the Federal Reserve’s monetary policy.Analysts warn Trump’s tariffs will refuel inflation, strengthening the argument to keep interest rates on hold instead of lowering them when the Fed meets next week.The Fed faces pressure from the president to cut rates.Oil prices ticked up, partly from continued uncertainty about the direction of US-Iran talks on Tehran’s nuclear programme. Iran said a new round of talks was planned for Sunday, in the Omani capital Muscat — but Trump had earlier said the meeting was expected on Thursday. Each side has drawn up proposals for the other to consider.- Key figures at around 1335 GMT -New York – Dow: FLAT at 42,752.41 pointsNew York – S&P 500: UP 0.1 percent at 6,012.73New York – Nasdaq Composite: UP 0.1 percent at 19,608.41London – FTSE 100: UP 0.5 percent at 8,873.85Paris – CAC 40: FLAT at 7,793.72Frankfurt – DAX: DOWN 0.4 percent at 24,076.70Tokyo – Nikkei 225: UP 0.3 percent at 38,211.51 (close)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 24,162.87 (close)Shanghai – Composite: DOWN 0.4 percent at 3,384.82 (close)Euro/dollar: UP at $1.1445 from $1.1420 on MondayPound/dollar: DOWN at $1.3531 from $1.3552Dollar/yen: DOWN at 144.49 yen 144.60 yenEuro/pound: UP 84.58 pence from 84.27 penceBrent North Sea Crude: UP 0.4 percent at $67.33 per barrelWest Texas Intermediate: UP 0.4 percent at $65.53 per barrel

Major stocks markets mostly dropped in Asia and Europe on Tuesday as investors waited for the outcome of US-China talks aimed at cementing a fragile trade war truce between the world’s two biggest economies.London’s benchmark FTSE 100 index bucked the trend as it was on course to close at a record high after weak UK unemployment data raised chances the Bank of England will cut interest rates into next year.”US-China trade talks are the main focus for investors,” noted Neil Wilson, UK investor strategist at Saxo Markets.”A good outcome could send Wall Street to a fresh record high” when trading resumes Tuesday, he added.The world’s two biggest economies are holding a second day of trade talks in London, seeking to shore up a shaky tariff truce in a bitter row deepened by export curbs.One of US President Donald Trump’s top advisers said he expected “a big, strong handshake” at the end of the discussions.Trump told reporters at the White House: “We are doing well with China. China’s not easy.”I’m only getting good reports.”The agenda is expected to be dominated by exports of rare earth minerals used in a wide range of things including smartphones, electric vehicle batteries and green technology.”Investors remain on tenterhooks as talks between the US and China spill over to today, with a nuanced situation yet to be resolved,” said Richard Hunter, head of markets at Interactive Investor.”For the time being, the pause in tariff hostilities is a positive starting point as the US seeks the restoration of rare earth mineral exports from China which would inevitably result in a mutual relaxation.”Investors are awaiting also key US inflation data this week, which could impact the Federal Reserve’s monetary policy.Analysts warn Trump’s tariffs will refuel inflation, strengthening the argument to keep interest rates on hold instead of lowering them.The Fed faces pressure from the president to cut rates, with bank officials due to make a decision at their policy meeting next week.While the Bank of England is expected to pause on rates at its next meeting this month, analysts now see it cutting on at least two occasions this year and again in early 2026 after Tuesday’s jobs data, which also showed slowing wages growth.News of dampened inflationary pressure weighed heavily on the pound, boosting the London stock market, which has benefitted this year from the UK government striking post-Brexit trade agreements with the US and India.Prime Minister Keir Starmer’s Labour administration has managed also to shield Britain against Trump’s most severe tariff rates.- Key figures at around 1100 GMT -London – FTSE 100: UP 0.4 percent at 8,869.51 pointsParis – CAC 40: DOWN 0.1 percent at 7,782.46 Frankfurt – DAX: DOWN 0.5 percent at 24,060.83Tokyo – Nikkei 225: UP 0.3 percent at 38,211.51 (close)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 24,162.87 (close)Shanghai – Composite: DOWN 0.4 percent at 3,384.82 (close)New York – Dow: FLAT at 42,761.76 (close)Euro/dollar: UP at $1.1424 from $1.1420 on MondayPound/dollar: DOWN at $1.3498 from $1.3552Dollar/yen: UP at 144.63 yen 144.60 yenEuro/pound: UP 84.62 pence from 84.27 penceBrent North Sea Crude: UP 0.5 percent at $67.37 per barrelWest Texas Intermediate: UP 0.5 percent at $65.62 per barrelburs-bcp/ajb/lth

The United States and China began a second day of trade talks on Tuesday, seeking to shore up a shaky tariff truce in a bitter row deepened by export curbs.The gathering of key officials from the world’s two biggest economies began Monday in London, after an earlier round of talks in Geneva last month.Stock markets wavered as investors hoped the talks will bring some much-needed calm on trading floors and ease tensions between the economic superpowers.A US Treasury spokesman told AFP on Tuesday the “talks resumed earlier this” morning.One of US President Donald Trump’s top advisers said he expected “a big, strong handshake” at the end of the talks in the historic Lancaster House, operated by the UK foreign ministry.Trump told reporters at the White House on Monday: “We are doing well with China. China’s not easy.”I’m only getting good reports.”The agenda is expected to be dominated by exports of rare earth minerals used in a wide range of things including smartphones, electric vehicle batteries and green technology.”In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy,” Trump’s top economic adviser, Kevin Hassett, told CNBC on Monday.But even though Beijing was releasing some supplies, “it was going a lot slower than some companies believed was optimal”, he added.Still, he said he expected “a big, strong handshake” at the end of the talks.”Our expectation is that after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume,” Hassett added.He also said the Trump administration might be willing to ease some recent curbs on tech exports.- Concessions? -Tensions between Washington and Beijing have heightened since Trump took office in January, with both countries engaging in a tariffs war hiking duties on each other’s exports to three figures — an effective trade embargo.The Geneva pact to cool tensions temporarily brought new US tariffs on Chinese goods down from 145 percent to 30 percent, and Chinese countermeasures from 125 percent to 10 percent.But Trump recently said China had “totally violated” the deal.”Investors are willing to grab on to any positive trade headline right now, as this is keeping hopes of a rally alive,” said Kathleen Brooks, research director at trading group XTB.Ipek Ozkardeskaya, senior analyst at the Swissquote Bank, said that although there had been “no breakthrough” it seemed “the first day of the second round of negotiations reportedly went relatively well”.”Rumours are circulating that the US may be willing to make concessions on tech exports in exchange for China easing restrictions on rare earth metal exports,” she said.Rare earth shipments from China to the US have slowed since the tariff war was triggered by Trump’s so-called “Liberation Day” announcements, according to Brooks.The US leader slapped sweeping levies of 10 percent on friend and foe alike, and threatened steeper rates on dozens of economies.The tariffs have already had a sharp effect, with official figures from Beijing showing Chinese exports to the United States in May plunged by 12.7 percent.China is also in talks with other trading partners — including Japan and South Korea — to try to build a united front to counter Trump’s tariffs.Chinese leader Xi Jinping on Tuesday urged South Korea’s new President Lee Jae-myung to work with Beijing to uphold free trade to ensure “the stability and smooth functioning of global and regional industrial and supply chains.””A healthy, stable, and continuously deepening China–South Korea relationship aligns with the trend of the times,” Xi said in a phone call, according to the Xinhua news agency.Chinese Vice Premier He Lifeng is heading the team in London, which included Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang.US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the US delegation.