LONDON: Stock markets edged higher on Wednesday (Jun 11) as investors welcomed cooler United States inflation data and a China-United States agreement aimed at lowering trade tensions.
After two days of talks between US and Chinese negotiators in London, US President Donald Trump said: “Our deal with China is done”.
The US and China slashed tit-for-tat tariffs after negotiations in Geneva last month, but tensions flared up again after Trump later accused Beijing of violating the pact reached in Switzerland.
The positive London talks provided some relief to markets.
“Constructive talks between the US and China have put markets on a firmer footing, as investors hope that the worst of the tariff turbulence may have passed,” said Richard Hunter, head of markets at Interactive Investor.
Wall Street’s three main indices rose as trading got underway in New York and Europe’s main indices were higher in afternoon deals.
Asian stock markets also got a lift on the China-US progress, with Hong Kong among the best performers.
As well as tariffs, a key issue in the discussions was China’s export of rare earths used in smartphones and electric vehicles, while Beijing was keen to see an easing of restrictions on its access to tech goods.
Trump said on his Truth Social platform that China would supply rare earth minerals and magnets – vital elements for US industries.
The US, he added, would allow Chinese students to remain in US universities.
Washington has infuriated Beijing by vowing to revoke the visas of Chinese students, a major source of revenue for US universities.
China said the trade talks made new progress, and Vice Premier He Lifeng stressed the need for Beijing and Washington to strengthen cooperation.
