The discussion occurred amid rising tensions, despite a recent softening of tariffs following a meeting in Switzerland. In response to a U.S. warning against the use of Chinese-made AI chips, including those from Huawei, China’s Ministry of Commerce criticized the move as “unilateral bullying” and accused the United States of undermining ongoing trade negotiations.

Meanwhile, the yield on the U.S. 10-year Treasury note stabilized near 4.53% on Friday after falling five basis points in the previous session, retreating from a three-month high. The pullback followed the narrow approval of President Trump’s new tax and spending bill in the House of Representatives, which now awaits Senate review. Federal Reserve Governor Christopher Waller stated that further rate cuts may be possible later this year, depending on the evolution of Trump’s tariff measures. Earlier in the week, Treasury yields surged amid fears that the bill would significantly raise the U.S. national debt, currently exceeding $36 trillion. The Congressional Budget Office estimates the cost of the legislation at nearly $4 trillion, intensifying concerns about long-term fiscal stability. Investor unease was further exacerbated by Moody’s decision to downgrade the U.S. credit rating from Aaa to Aa1, citing persistent deficits and rising interest payments.

For more detailed analysis, please take a look at the file below.