trade tensions

Top US and Chinese officials convened in London to de-escalate trade tensions that have destabilized global markets. Discussions, led by key figures like He Lifeng and Howard Lutnick, follow a temporary truce established in Geneva. Disagreements persist over semiconductors, visa restrictions, and rare earth mineral exports, a critical point of contention given China's recent export license requirements.

Asian stocks experienced a surge following a fresh agreement between the US and China, aimed at de-escalating trade tensions. Japan's Nikkei 225 climbed by 0.5%, while Hong Kong's Hang Seng rose by 0.8%. The Shanghai Composite also saw a 0.5% increase. This progress has fueled optimism for a broader resolution after months of tariff disputes.

China's export growth decelerated in May, rising only 4.8% year-on-year, a significant drop from April's 8.1% increase, primarily due to a sharp 35% decline in shipments to the United States amid ongoing trade tensions. Despite this, exports to Southeast Asia and the European Union showed strong growth, partially offsetting the US decline.

Foreign investors turned net sellers in the first week of June, withdrawing Rs 8,749 crore from Indian equity markets due to renewed US-China trade tensions and rising US bond yields. This shift follows significant investments in May and April.

The US trade deficit dramatically narrowed in April to a two-year low, plummeting by over 55% due to President Trump's sweeping tariffs. Imports plunged 16.3%, particularly affecting consumer goods from China, where trade sharply slowed. While exports rose slightly, driven by industrial supplies, the future of trade deals remains uncertain amid ongoing tensions and accusations.

Gold price prediction today: Gold prices are expected to see limited upside due to easing US-China trade tensions and steady US macro cues. Analysts suggest selling opportunities around $3360-3390 per oz. Silver, however, is witnessing a breakout and is expected to outperform gold, potentially reaching $38.70 - 41.50 per oz, driven by safe-haven demand and industrial use.

Oil prices held steady, buoyed by hopes from renewed US-China trade talks in London, following a 4% gain last week. Negotiators are meeting to ease tensions, especially after China's rare earth export curbs. Market sentiment hinges on the meeting's outcome, balancing trade optimism with concerns over OPEC+ production and geopolitical risks.

Amid escalating Israel-Iran tensions, the Global Trade Research Initiative (GTRI) urges India to urgently assess energy risks and trade vulnerabilities. With significant reliance on West Asia for crude oil and LNG, potential disruptions to the Strait of Hormuz and Red Sea corridor pose threats.

The European Central Bank has lowered its key interest rate to 2% amidst growing concerns over US trade policies and a slowing eurozone economy. This decision, the eighth consecutive rate cut, aims to protect against potential fallout from trade tensions and weak domestic demand.

The EU and U.S. face a July 9 deadline to avert tariffs after a temporary reprieve granted by President Trump. Deep divisions persist over U.S. demands for trade concessions, including reducing the trade deficit and addressing non-tariff barriers. While the EU proposes a 'zero-for-zero' tariff deal and increased U.S. imports, the U.S.

US consumer sentiment rebounded in June, marking the first increase in six months, according to University of Michigan data. The Consumer Sentiment Index surged to 60.5, a 16% rise from May, signaling economic stabilization amid subdued inflation and eased trade tensions with China. Despite the improvement, sentiment remains below December 2024 levels, with consumers still wary of economic risks.

Wall Street futures dipped slightly despite the US and China reaching a trade agreement consensus after high-level talks in London. Dow futures fell 110 points, while S&P 500 and Nasdaq futures also declined. Earlier, major US indexes neared record highs as US-China negotiations progressed.

In a potential breakthrough, the US and China have established a framework to resolve their long-standing trade disputes following discussions in London. US Commerce Secretary Howard Lutnick announced the agreement, pending presidential approval, expressing optimism about resolving issues like rare earth exports.

Gold prices in Dubai have surged due to escalating tensions between Israel and Iran, prompting investors to seek safe-haven assets. The 24-karat gold reached Dh412.75 per gram, nearing its all-time high, driven by geopolitical uncertainties and a weakening US dollar. This price increase may impact consumer spending habits in the UAE, especially for those purchasing gold jewellery.

Gold prices in India soared to near all-time highs, reaching Rs 1,01,540 per 10 grams, fueled by escalating geopolitical tensions after Israel's strike on Iran. Silver also surged, hitting Rs 1,08,100 per kg, matching its lifetime high. Investors sought safe-haven assets amid global instability and expectations of potential US Federal Reserve interest rate cuts, further driving the precious metals' rally.

US officials, including Treasury Secretary Scott Bessent, are set to meet in London for trade negotiations, announced President Trump. This follows a conversation with Chinese President Xi Jinping amidst ongoing trade tensions. Despite recent tariff reductions after Geneva talks, concerns remain.

US and China are holding trade negotiations in London for a second day, following a tentative agreement in Geneva to pause tariff implementation for 90 days. Discussions address disagreements over AI semiconductors, visa policies, and rare earth mineral exports. Trump aims to increase US market access in China, seeking to stabilize the delicate pause in their trade conflict.

Stock market crash today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, tanked in trade on Thursday. While Nifty50 went below 24,900, BSE Sensex tanked over 900 points intraday.