Trump Announces U.S.-China Trade Deal Signing—Chinese Stocks Surge on Market Euphoria
Trade truce sends Shanghai Composite rallying—because nothing fuels bullish sentiment like geopolitical theater.
The Art of the (Trade) Deal
Markets shrugged off months of tariff threats as the U.S. and China inked a commerce-focused agreement. Analysts noted the predictable Pavlovian response: Chinese equities jumped while crypto remained volatile—because decentralized assets don’t care about political photo ops.
Wall Street’s Whisper
Behind the headlines? A classic ‘buy the rumor, sell the news’ setup. Institutional algos front-ran the announcement weeks ago, leaving retail traders to chase momentum. Meanwhile, Bitcoin maximalists smirked—golden crosses and trade deals both look better on charts than in reality.
Closing thought: If ‘stocks up’ is the metric for success, maybe we should let politicians negotiate more often… just keep them away from the money printer.
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The deal could potentially involve more U.S. exports to China, a plan of action previously hinted at by Trump. In addition, export curbs on both sides could be eased.
China Continues to Limit Rare Earth Exports
Earlier this month, the two sides agreed to a framework agreement that WOULD result in 55% tariffs on imported Chinese goods while China would tariff imported U.S. goods by 10%. However, China may still be limiting rare earth exports, which are crucial in the production of semiconductors, cars, and planes. That comes despite Beijing promising to ease rare earth curbs as part of the agreement.
Chinese authorities have stalled on approving requests for rare-earth magnets from U.S. companies, according to the Wall Street Journal.
“Yes, the export restrictions have been paused on paper. However, ground reality is completely different,” said Benchmark Mineral Intelligence rare-earth analyst Neha Mukherjee.
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