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US-China trade deal is 'done,' Trump says

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Markets guarded, await more details

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Chinese equities rise, US stocks edge up

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Investors hope for robust deal, but prepare for more

uncertainty

(Updates paragraphs 1-5,7-9 with details of trade talks and

comments; updates prices throughout)

By Saqib Iqbal Ahmed and Ankur Banerjee

NEW YORK/SINGAPORE, June 11 (Reuters) - The latest trade

truce between China and the United States offers investors hope

that the two superpowers can reach a lasting resolution and

prevent further market disruption, but the absence of detailed

terms leaves room for potential future tariff conflicts.

President Donald Trump said on Wednesday the U.S. deal

with China is done, with Beijing to supply magnets and rare

earth minerals while Washington will allow Chinese students in

U.S. colleges and universities.

China's Vice Commerce Minister Li Chenggang said on

Tuesday that the Chinese and U.S. negotiating teams had agreed a

framework on trade after two days of talks, and would take that

back to their leaders.

A White House official said the agreement allows the

U.S. to charge a 55% tariff on imported Chinese goods.

Wall Street stocks edged down, while the dollar slipped.

Chinese stocks inched up to near three-week

highs.

The guarded reaction from currency and stock investors

showed that while the meeting ended in a truce, markets had

hoped for more. The lack of details means uncertainty is likely

to remain high.

"The details are scarce, and both sides are claiming that

their needs were satisfied ... but this issue is not close to

being settled," Chris Grisanti, MAI Capital Management's chief

market strategist, said.

The main positive takeaway was the talks indicated

pragmatism on both sides, analysts said. While the outcome of

the talks supported riskier assets, investors appeared to remain

vigilant.

"The devil is in the details... The other big piece of news

is the U.S. and China seem to have a framework for further

discussions, and that contradicts a statement of 'it's a done

deal'," said Oliver Pursche, senior vice president at

Wealthspire Advisors, in New York.

With most negotiations incomplete as Trump's July 8

deadline for a 90-day pause on tariffs on other U.S. trading

partners approaches, investors remain watchful.

Markets plunged after Trump's "Liberation Day" tariff

announcement on April 2 as investors worried about an impending

recession, but those fears eased as Trump rolled back most of

the punitive tariffs.

The benchmark S&P 500 index has risen more than 20%

from its April lows, and is close to reclaiming a record high.

Chinese stocks have underperformed as investors fret over a

persistently weak economy, but have nonetheless recouped losses

to return to the April 2 level.

TARIFF REPRIEVE

U.S. Commerce Secretary Howard Lutnick said the latest plan

to ink a deal put "meat on the bones" of an agreement reached

last month in Geneva to ease bilateral retaliatory tariffs that

had reached crushing triple-digit levels.

While this might remove some of the extreme gloom scenarios

for markets, investors would need more concrete steps to fully

rejoice.

The broad impact of the duties in a trade war that could

bring $600 billion in two-way trade to a standstill is being

felt in both economies. Economists say the damage from the

tit-for-tat duties and volatility in financial markets would be

an overhang on the global economy for months.

Phillip Wool, chief research officer and lead portfolio

manager at Rayliant Global Advisors, said investors bidding

stocks back to record highs were significantly underestimating

the damage already caused by uncertainty this year.

"I'm feeling more cautious and opportunistic than

unconditionally bullish at this moment," he said. "If any major

deal is reached, we could see stocks rally in response, but my

sense is that's more emotion at this point, and the euphoria

could be short-lived as new risks materialize."

China's economy needs a reprieve from tariffs that have hit

its exports as the country battles deep deflationary pressures

and weak consumption.

The ultimate trade war impact on U.S. inflation and the jobs

market remains to be seen, but tariffs have hammered U.S.

business and household confidence.

That has pushed the dollar down more than 8% against other

major currencies this year, as investors worry about the U.S.

economy and fiscal health. A Republican bill to cut taxes and

spend more has exacerbated worries about U.S. debt.

Other challenges facing Trump further raise the stakes for a

successful negotiation with China. They include a spectacular

fallout with the world's richest person, Elon Musk, intense

scrutiny of his tax bill and street protests in Los Angeles over

his administration's immigration policy.