Finance
Morning Bid: So, It's a Framework for a Deal, Maybe?
Published by Global Banking & Finance Review®
Posted on June 11, 2025
2 min readLast updated: January 23, 2026
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Published by Global Banking & Finance Review®
Posted on June 11, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleA potential U.S.-China trade deal framework is proposed, impacting global markets. Mixed reactions follow as legal and economic factors play a role.
(Reuters) -A look at the day ahead in European and global markets from Wayne Cole.
So, apparently, they have the concept of a plan for a proposal on a framework for a deal to break the latest U.S.-China trade impasse. Which was only needed because President Trump sent that tweet claiming Beijing had broken the old deal.
This deal now needs to be approved by Trump and Chairman Xi, and then implemented. At least the Chinese side thought the talks were "rational", which was a step forward.
Details were scant, though the U.S. team did claim that it would resolve China's export restrictions on rare earth minerals and magnets. What Beijing got in return was not yet clear.
Neither was it clear whether this truce would last any longer than the last one, which might be why the early market response was less than enthusiastic. U.S. and European stock futures were all down between 0.2% and 0.6%, and Asian shares modestly firmer.
There is still the small matter of whether the April 2 levies are actually legal, with a federal appeals court allowing the tariffs to remain in effect while it reviews a lower court decision blocking them.
The dollar and Treasuries were little changed as the U.S. CPI looms later in the day and any upside surprise would fan stagflationary fears, to the detriment of both markets.
Analysts assume lower energy prices will keep the headline rise to 0.2%, while the core is seen up 0.3%. Attention will be on whether tariffs show up in goods prices, though the full impact is likely to appear from June onwards. Measures of volatility suggest investors really aren't prepared for a high number, so anything in line will be a relief.
Treasuries also have a 10-year auction to weather, with the focus on the share taken by indirect bidders which include foreign central banks. The latter took a hefty 71% of the May sale, while primary dealers got just 8.9%. A repeat performance would be warmly welcomed.
Key developments that could influence markets on Wednesday:
* ECB wage tracker. Appearances by ECB council membersGabriel Makhlouf; Piero Cipollone; Philip Lane and Claudia Buch;policymaker Yiannis Stournaras * British finance minister Rachel Reeves releases spendingreview * U.S. CPI data for May(By Wayne Cole; Editing by Christopher Cushing)
There is a proposed framework for a deal to resolve the U.S.-China trade impasse, pending approval from President Trump and Chairman Xi.
The talks aim to address China's export restrictions on rare earth minerals and magnets, though the specifics of what the U.S. will receive in return are unclear.
The early market response was tepid, with U.S. and European stock futures showing declines, indicating skepticism about the durability of the proposed truce.
There are ongoing legal challenges regarding the legality of the April 2 levies, with a federal appeals court allowing the tariffs to remain in effect while reviewing a lower court's decision.
Analysts are watching the U.S. CPI, with expectations of a 0.2% rise in headline inflation and a 0.3% increase in core inflation, as these figures could impact market sentiment.
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