US, China "Agree In Principle On Framework For Implementing Geneva Consensus"

After two days of talks, the US and China have reached an agreement in principle, a "framework," to implement a pre-existing consensus on trade. This framework's details were initially agreed upon weeks prior, raising questions about the purpose of the recent meetings. The framework aims to address issues like rare earth minerals and magnets, but the actual resolution remains unclear. The US is prepared to lift export measures once China approves licenses, indicating a potential reliance on Chinese action. The primary goal of the framework is to increase overall trade with China. There were no further meetings scheduled, but officials will communicate as needed. Market reactions were mixed, with gold initially falling before recovering, and stocks experiencing volatility. Currency markets saw broad USD selling, with USDJPY falling back below 145. The announcement effectively boiled down to agreements to keep the lines of communication open. The meetings seemingly served to remove negativity, but yielded no concrete new deals or agreements.