Daily Fundamental Analysis: Indecisiveness In the Global Markets as Investors Await Trade Talks Outcome

The U.S. and China have reached a trade agreement after talks in London, pending approval from both countries’ leaders. U.S. Commerce Secretary Lutnick and Chinese Vice Minister Li confirmed reaching a framework to implement the Geneva consensus following recent presidential discussions.

The agreement follows a phone call between Presidents Trump and Xi that eased tensions over Geneva trade agreement violations. In May, both nations agreed to suspend April tariffs and roll back other measures.

The framework includes provisions on rare-earth exports from China and U.S. tech sales restrictions. Both sides will now seek leadership approval to proceed with implementation.

Markets showed mixed reaction, with China’s CSI 300 slightly up while U.S. futures declined as investors await framework details.

US Stock futures dipped Wednesday as markets awaited details on the U.S.-China trade consensus and May’s consumer inflation data. US futures futures tied to the S&P 500, Nasdaq 100, and Dow Jones  all fell about 0.3%.

Markets remain sensitive to trade developments after May’s temporary tariff pause between both nations.

Tuesday saw gains across major indices, with the S&P 500 up 0.6%, the Nasdaq Composite rising 0.6%, and the Dow adding 0.3%.

Wednesday’s CPI report from the US is expected to show 0.2% monthly growth and 2.4% annual inflation. While unlikely to change Fed policy, the data could impact market sentiment.

In the crypto market, bitcoin rose for the third consecutive day on Tuesday driving by market optimism. The cryptocurrency broke the $110,000 mark again and is potentially heading to its all-time high.

Gold prices remained mostly unchanged yesterday. The precious metal is still trading within the $3,300 and $3,400 range

The US dollar showed some resilience against the Japanese Yen. USDJPY rose 0.19% on Tuesday as it broke the psychological level 145.00