Global Markets Wobble Despite Trump-Xi Deal and Fed Rate Cut

Global markets showed a mixed reaction on Thursday despite a high-profile meeting between U.S. President Donald Trump and China’s President Xi Jinping. The MSCI Asia-Pacific index slid 0.5% after earlier gains, while U.S. S&P 500 futures dipped 0.1%. 

Investors were unsettled by the lack of detailed follow-through on the tariff and trade deal, even as Trump announced China would resume bean imports and keep rare-earth exports flowing. Markets had largely priced in the deal. 

At the same time, the Federal Reserve cut interest rates by 25 basis points. Chair Jerome Powell signalled caution about further cuts amid weak data and a government shutdown. 

The Bank of Japan held policy steady, contributing to a weak yen and lower Japanese equities. Meanwhile, tech stocks were volatile—Microsoft and Meta Platforms weighed on sentiment while Samsung Electronics rose 3.4% after strong earnings. 

Brent crude oil dropped to $64.59 a barrel, reflecting broader cautious sentiment. 

Ultimately, markets remain cautious: headline events triggered moves, but investors await deeper clarity on the China deal, tech earnings and central-bank direction to confirm the next major trend.