6 hours of talks on the first day: the market has given the answer

The first day of the China-US talks in London ended and will continue on the second day.

1. The talks lasted for 6 hours, at Lancaster House near Buckingham Palace. It ended around 20:00 local time (Tuesday morning 3:00 Beijing time), and will meet again at 10:00 on Tuesday morning (Beijing time 17:00 pm).

2. After the talks, US Treasury Secretary Bennett and Commerce Secretary Lutnick both spoke to reporters.

Bessant said that a "good meeting" was held, while Lutnick called the discussion "fruitful."

Trump told reporters at the White House that I received only good news.

3. The Chinese side did not comment to the media when they left. Continuing the previous style, more of a "look at actions, not words" strategy was adopted.

One ​​detail is worth noting. After the first day of the first (Geneva) talks, neither side made a speech. This time, the US side took the initiative to express "good" and "fruitful" - a significant change in tone, creating an atmosphere of "mild confrontation" rather than "fierce conflict" for the market.

The US side tried to guide market sentiment, while China avoided overdrawing its chips. The two sides had different rhythms, but both were reserving negotiation space for the "second day".

4. The US side hinted that it was willing to relax export controls in exchange for China's relaxation of rare earth exports.

Hassett, director of the White House National Economic Council, told CNBC that U.S. export controls will be relaxed and China will release rare earths. The purpose of the talks was to ensure that they were serious, but in fact it was to shake hands and make peace.

Bloomberg quoted people familiar with the matter as saying that the United States is ready to cancel a series of recent restrictions on chip design software, aircraft engine parts, chemicals and nuclear materials (many of which were introduced as tensions between the two countries heated up in the past few weeks).

Trump did not make a commitment to lifting export restrictions. When asked about the possibility of lifting export restrictions, he told reporters "we will wait and see." 5. Market trends are the best answer: the Dow Jones and S&P 500 were flat, while the Nasdaq rose 0.31%. This is a "cautiously optimistic" event.