🔹 1. Talks continue in London on Day 2

High-level delegations from both countries—including U.S. Treasury Secretary Scott Bessent, Commerce Secretary Lutnick, Trade Representative Greer, and China’s Vice Premier He Lifeng—are meeting at Lancaster House in London for a second day of negotiations .

Discussions are centered on export controls—particularly semiconductors—and China’s critical rare‑earth mineral exports .

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🔹 2. Rare earths & semiconductors front and center

Washington wants China to fully reopen rare‑earth shipments that are vital to U.S. industries. Brainpower like magnets for EVs and aerospace are at play .

Conversely, China is seeking relief from U.S. export restrictions on a broader range of semiconductors—though high‑end Nvidia chips remain off limits .

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🔹 3. Markets are hopeful but cautious

U.S. chip stocks jumped—AMD +4.8%, Qualcomm +4.1%, iShares Semiconductor ETF +2.4%—on reports that lower-end chips may be easier to export . The Nasdaq rose 0.3%.

The dollar strengthened slightly (index ~99.19) ahead of U.S. inflation data, while gold fell ~0.6% as investors awaited concrete deals .