#USChinaTradeTalks

๐Ÿ“ˆ U.S. Markets

General Sentiment: Cautiously optimistic

S&P 500: Rose +0.6% as optimism grew around potential easing of U.S.-China tensions, particularly in rare earth supplies.

Nasdaq Composite: Jumped +0.9%, led by tech and semiconductor stocks on hopes of loosened Chinese export controls.

Dow Jones: Gained +0.4%, buoyed by industrials and exporters.

Nvidia, AMD, Intel: Rose between 1.5โ€“3% due to signs China may resume rare earth exports vital to chipmaking.

Boeing: Climbed +1.2% after reports that the U.S. might ease some engine tech restrictions if China complies.

๐Ÿ‡จ๐Ÿ‡ณ Chinese Markets

General Sentiment: Muted optimism, tempered by poor export data

Shanghai Composite: Up +0.3%

Hang Seng Index (HK): Rose +0.5%, mainly driven by tech firms and exporters.

๐Ÿ“‰ Headwind:

Chinaโ€™s May exports

๐Ÿ‡ช๐Ÿ‡บ European Markets

General Sentiment: Mixed

DAX (Germany): Flat, despite automakers like BMW and Volkswagen expressing concern about rare earth supply chain instability.

FTSE 100 (UK): Gained +0.4% as London hosts the talks, boosting short-term investor optimism.

๐Ÿ’ต Currency & Commodities

U.S. Dollar Index (DXY): Held steady; traders are in a wait-and-see mode.

Chinese Yuan: Strengthened slightly against the dollar on hopes of easing trade tensions.

Rare Earth Prices: Prices for Neodymium and Dysprosium spiked ~5โ€“7% due to recent export bottlenecks but could stabilize if China resumes exports.

Oil (WTI): Dipped slightly to $75.60/barrel as global demand concerns linger.

๐Ÿ“‰ Bond Market

U.S. 10-Year Treasury Yield: Fell to 4.12%, indicating continued investor caution despite equity gains.

Short-term: Markets like the opticsโ€”progress is better than confrontation.

Medium-term: Skepticism remains. Investors want concrete agreements, especially around rare earth access and tech restrictions.

Risk: If the talks break down or promises go unfulfilled, expect sharp volatilityโ€”particularly in tech, industrials, and energy.