By WSJ Staff

U.S.-China trade talks are in the spotlight, with a second day of negotiations in London aimed at patching up a fraying truce between the world's two biggest economies.

As he arrived, Commerce Secretary Howard Lutnick said the talks were "going well" and he expected another full day of discussions.

Export controls are at the top of the agenda. Kevin Hassett, director of the National Economic Council, said Monday that the talks were likely to result in Beijing quickly releasing rare earths for export, and Washington easing China's access to semiconductors.

New data showed a modest recovery in sentiment at smaller U.S. businesses, reflecting lessening concerns about tariffs and hopes for a boost from President Trump's tax-and-spending megabill.

However, the World Bank became the latest institution to warn that trade policy could weigh on U.S. growth. It forecast economic expansion of just 1.4% this year, half the rate notched in 2024.

Blackstone plans to invest as much as $500 billion in Europe over the next decade, Chief Executive Steve Schwarzman said in an interview with Bloomberg. The U.S. private-markets giant expects growth rates to rise in the region, he said.

In recent market action:

Stock indexes stood flat to modestly higher.

Global markets were mixed. Chinese stocks closed slightly lower, while the Stoxx Europe 600 edged up.

Ten-year Treasury yields held broadly steady, after settling Monday at 4.481%.

J.M. Smucker stock fell following disappointing results. Earnings from GameStop are due after the close.

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(END) Dow Jones Newswires

June 10, 2025 12:07 ET (16:07 GMT)

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