Global Markets:
- Asian Stock Markets : Nikkei up 0.54%, Shanghai Composite up 0.54%, Hang Seng up 0.86% ASX up 0.18%
- Commodities : Gold at $3361.35 (0.49%), Silver at $36.68 (0.19%), Brent Oil at $66.8 (-0.09%), WTI Oil at $65.08 (0.23%)
- Rates : US 10-year yield at 4.477, UK 10-year yield at 4.5460, Germany 10-year yield at 2.5300
News & Data:
- (USD) NFIB Small Business Index 98.8 to 95.8 expected
Markets Update:
Asia-Pacific markets rose on Wednesday as the U.S. and China reached a trade agreement framework, according to officials from both nations. The deal, stemming from discussions in London, now awaits final approval from President Biden and President Xi. “We have reached a framework to implement the Geneva consensus and the call between the two presidents,” stated U.S. negotiator Lutnick, a sentiment echoed by Li Chenggang, China’s international trade representative.
Talks continued into a second day, with U.S. Treasury Secretary Scott Bessent departing while Trade Representative Jamieson Greer and Lutnick remained to finalize the deal. Lutnick indicated discussions might extend into Wednesday if necessary, showing both sides’ commitment to concluding the negotiation successfully.
In the region, markets responded positively to the news. Mainland China’s CSI 300 index gained 0.77%, and Hong Kong’s Hang Seng Index rose 0.9%. Japan’s Nikkei 225 added 0.45%, though the broader Topix index remained flat. South Korea’s Kospi advanced 0.71%, briefly approaching a 42-month high, while the Kosdaq surged 1.71%. Australia’s S&P/ASX 200 increased 0.29%, reaching a record high earlier in the session. India’s Nifty 50 rose 0.11% at the open.
Meanwhile, U.S. stock futures were flat during early Asia hours as investors awaited the release of May’s inflation data. Overnight, optimism over trade progress lifted Wall Street. The Dow Jones climbed 105.11 points (0.25%) to close at 42,866.87. The S&P 500 rose 0.55% to 6,038.81, and the Nasdaq Composite gained 0.63%, ending at 19,714.99—marking the third straight day of gains.
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