Mike Dolan
5 min read
By Mike Dolan
LONDON (Reuters) -What matters in U.S. and global markets today
I'm excited to announce that I'm now part of Reuters Open Interest (ROI), an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X.
Markets have effectively flatlined awaiting the outcome of this week's U.S.-China trade talks in London, though as we near the halfway point of 2025, investors are taking an increasingly benign view of the disruptive and often chaotic last six months, as I discuss in today's column.
But now onto all of today's market news.
Today's Market Minute
* Global stocks and the dollar edged higher on Tuesday as trade talks between the United States and China were set to extend to a second day, giving investors some reason to believe tensions between the world's two largest economies may be easing.
* The Trump administration on Monday ordered U.S. Marines into Los Angeles and intensified raids on suspected undocumented immigrants, fueling more outrage from street protesters and Democratic leaders who raised concerns over a national crisis.
* All three major U.S. asset classes – stocks, bonds and the currency – have had a turbulent 2025 thus far, but only one has failed to weather the storm: the dollar. Hedging may be a major reason why, claims ROI columnist Jamie McGeever.
* Asian countries aren't rushing to buy U.S. energy commodities, even though doing so would help them meet President Donald Trump's demand for lower trade surpluses. Read the latest from ROI columnist Clyde Russell.
* European defence stocks have been on a tear since the devastating conflict in Ukraine started in 2022, a trend that has only accelerated since announcements of European rearmament plans. But the beneficial economic impact of the European defence supercycle may be heavily dependent on how it’s financed, argues Panmure Liberum investment strategist Joachim Klement.
White smoke or London fog?
U.S. and Chinese officials resumed trade talks for a second day in London on Tuesday, hoping to secure a breakthrough over export controls on rare earths and other issues threatening to widen the rupture between the world's two biggest economies.
The two delegations, led on the U.S. side by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer opposite a Chinese contingent helmed by Vice Premier He Lifeng, are meeting at the ornate Lancaster House in the British capital.
