SINGAPORE (Reuters) -U.S. Commerce Secretary Howard Lutnick said that a trade framework and implementation plan agreed with China in London should result in restrictions on rare earths and magnets being resolved.
China’s Vice Commerce Minister Li Chenggang said earlier the two teams had agreed on implementing their Geneva consensus and would take the agreed framework back to their leaders.
QUOTES:
CHRIS WESTON, HEAD OF RESEARCH, PEPPERSTONE, MELBOURNE:
“The devil will be in the details but the lack of reaction suggests this outcome fully expected.
“While clearly a positive outcome, the lack of reaction in S&P500 futures, and the incremental moves seen in CNH or AUD, suggests achieving the framework on the Geneva agreement was fully expected – the details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US produced chips to head East, but for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported.
“The reaction in Chinese equities could be telling and I suspect US equity futures will track developments here closely today.”
(Reporting by Asia markets team; editing by Neil Fullick)
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