Global markets cautious after “amazing” Donald Trump–Xi Jinping meeting with trade implications

Markets showed a tempered reaction following a high-profile meeting described by U.S. President Donald Trump as “amazing” with Chinese President Xi Jinping. The agreement suggested cuts to U.S.–China tariffs, resumption of U.S. soybean purchases, continued Chinese rare-earth exports and increased fentanyl-related enforcement. However, investors remained cautious as details were still scant and Beijing had not yet confirmed commitments. The Bank of Japan held interest rates steady and the Federal Reserve indicated additional rate cuts are not guaranteed, reinforcing risk-off tone. The mix of hopes and uncertainty kept equities and currency markets subdued.