Global US–China truce hopes lift markets as trade war fears ease

Equity futures climbed as signals emerged of a potential trade framework between the U.S. and China. Sources say the two sides are close to an agreement which could ease tariffs and export-control tensions, especially around rare-earths and technology. That optimism lifted Asian-markets pre-open and triggered rotation into cyclicals. Analysts caution that execution matters and that previous talks have stalled. Still, the shift in tone has reduced risk-premium in supply-chain stocks and lifted commodity sectors. Investors will watch for formal announcements and how bilateral negotiations translate into market flows.