U.S. and China agree trade-deal framework in Kuala Lumpur

Monday, October 27, 2025 at 08:30 UTC+01:00 (+0100), Malaysia (negotiation venue) / N/A, Kuala Lumpur

News category : Geopolitical Events

Senior U.S. and Chinese economic negotiators reported a broad framework agreement on trade issues during meetings in Kuala Lumpur, paving the way for a leaders' meeting to translate that framework into concrete measures. The outline reduced immediate threats of sharply higher U.S. tariffs and signalled cooperation on targeted issues such as agricultural purchases, fentanyl precursor controls and temporary pauses or rollbacks on potential rare-earth export restrictions. Markets treated the readout as a material de-risking of the global trade outlook: investors lifted valuations for China- and export-exposed stocks, recalibrated supply-chain risk premia, and pared safe-haven positions. Analysts cautioned that a framework is not a final treaty — implementation, verification and bilateral political dynamics will determine the ultimate economic effect — but the near-term effect was to remove an acute tail risk that had been pricing a higher risk premium into multiple assets.

Overall market impact

Strong bullish market impact - strength score : 92/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

To access impact scores per sectors and asset classes - you’ll need to subscribe to a membership

Impacted instruments :

Global equities (MSCI World, S&P 500)

Emerging market equities (China, HK)

Trade-sensitive commodities (soybeans, copper)

Risk-sensitive FX (AUD, NZD, KRW)

Equity and commodity futures

Discover Full Article Details and Insights with a Membership

To access the full article—along with in-depth analysis of how this event could impact the markets—you’ll need to subscribe to a membership. Our community of expert analysts will help you understand the implications clearly and provide relevant guidance to support your investment decisions.