Markets cautious in wake of US-China trade framework, and other finance news to know

After two days of negotiations in London, the United States and China announced on 11 June that they had agreed on a framework for trade discussions - offering a tentative step towards easing tensions between the world’s two largest economies.

US President Donald Trump declared the trade deal "done", hours after negotiators from Washington and Beijing reached the framework agreement aimed at reviving a fragile trade truce.

He highlighted on his social media platform that China will supply critical magnets and rare earths upfront, while the US will honour agreements, including allowing Chinese students to study in American colleges. Trump stated, “We are getting a total of 55% tariffs, China is getting 10%.”

Global markets responded with caution amid a lack of concrete detail from the US-China announcement. According to CNBC, US Commerce Secretary Howard Lutnick stated that the current US tariff rate on Chinese imports, set at 55%, would not change, despite the absence of a finalized trade agreement.

But sentiment improved in the US following a cooler-than-expected inflation report, which suggested that tariff pressures may not yet be feeding through to consumer prices.

European stocks were down and Asia-Pacific markets mixed. And while the UK FTSE 100 saw its highest-ever close on 11 June, the British economy contracted by 0.3 of a percentage point in April, with exports to the US at an all-time low.

“Even though details are scant, as long as the two sides are talking, I think markets will be happy,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia. “But it will still be very hard and take a long time to reach a comprehensive trade agreement.”

China’s producer price index plunged 3.3% year-on-year in May, marking the steepest decline in nearly two years, while consumer prices extended their fall as the economy struggled with weak demand and ongoing trade tensions with the US.

The data underscores mounting deflationary pressures driven by a prolonged housing downturn and fierce competition in sectors like automotive and coffee. Policymakers are expected to introduce further stimulus to counteract slowing growth, with retail sales and factory activity showing signs of strain.

Despite a slight uptick in core inflation, economists warn that persistent overcapacity will likely keep deflationary risks elevated through this year and next.

Bloomberg offers insights on why this deflation cycle persists:

Reuters reports that hefty discounts extend to luxury goods, with second‑hand stores marking items down by up to 90% - reflecting shifting consumer behaviour and signalling deeper deflationary trends.

US regulators have extended the deadline for new data reporting rules for private fund advisers - just one day before they were set to take effect. The rules are intended to strengthen oversight of the rapidly growing sector, which has underperformed large-cap US stocks for the first time in nearly 25 years amid a slowdown in private equity deal-making.

Investors are turning to silver and platinum as alternatives to gold and as hedges against a weakening US dollar, pushing both metals sharply higher, reports the Financial Times. With gold up 25% this year and seen by some as overvalued, silver has jumped to a 13-year high and platinum to a four-year peak, each gaining over 10% this month.

However, gold remains a dominant force in global reserves, having overtaken the euro as the world’s second-most important reserve asset, according to the European Central Bank. Bullion made up 20% of official holdings last year - surpassing the euro’s 16% and trailing only the US dollar at 46% - driven by record central bank purchases and soaring prices.

India’s National Stock Exchange has won approval to launch electricity futures, following similar clearance this month for the Multi Commodity Exchange. The contracts aim to help power utilities manage costs more efficiently, as distribution companies face $9.5bn in unpaid dues from expensive long-term deals and infrastructure losses.

Crypto assets could soon pose a serious threat to global financial stability, Klaas Knot, the outgoing chair of global watchdog the Financial Stability Board has warned. Speaking in Madrid, Knot said stablecoin issuers now hold substantial amounts of US Treasuries - a development that "must be monitored closely" - as regulatory pressure builds in both the US and Europe, reports Bloomberg.

Oil edged lower after surging over 4% on 11 June, driven by rising tensions in the Middle East and US trade policy shifts. Brent slipped toward $69, while West Texas Intermediate fell below $68, after Iran threatened US bases and Washington evacuated some embassy staff from Iraq.

With backing from the European Commission and ECB, Bulgaria may soon join the eurozone - potentially by January 2026. As the bloc prepares to welcome its 21st member, the Forum's Digital Editor Spencer Feingold explores how this signal a broader shift in the euro’s global role.

In the following video, learn more about tokenization and its role in simplifying investing:

Can better sustainability data future-proof your business? With 85% of executives moving ahead on sustainability disclosures, unified reporting is becoming a strategic priority. But amid regulatory delays - like the EU’s postponed CSRD rollout - how can companies maintain clarity and resilience in a volatile global market?