(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

LONDON, June 10 (Reuters) - What matters in U.S. and

global markets today

I'm excited to announce that I'm now part of

Reuters Open Interest (ROI)

, an essential new source for data-driven, expert commentary

on market and economic trends. You can find ROI on the

Reuters website

, and you can follow us on

LinkedIn

and

X.

Markets have effectively flatlined awaiting the outcome of this

week's U.S.-China trade talks in London, though as we near the

halfway point of 2025, investors are taking an increasingly

benign view of the disruptive and often chaotic last six months,

as I discuss in today's column.

But now onto all of today's market news.

Today's Market Minute

* Global stocks and the dollar edged higher on Tuesday as

trade talks between the United States and China were set to

extend to a second day, giving investors some reason to believe

tensions between the world's two largest economies may be

easing.

* The Trump administration on Monday ordered U.S. Marines into

Los Angeles and intensified raids on suspected undocumented

immigrants, fueling more outrage from street protesters and

Democratic leaders who raised concerns over a national crisis.

* All three major U.S. asset classes - stocks, bonds and the

currency - have had a turbulent 2025 thus far, but only one has

failed to weather the storm: the dollar. Hedging may be a major

reason why, claims ROI columnist Jamie McGeever.

* Asian countries aren't rushing to buy U.S. energy commodities,

even though doing so would help them meet President Donald

Trump's demand for lower trade surpluses. Read the latest from

ROI columnist Clyde Russell.

* European defence stocks have been on a tear since the

devastating conflict in Ukraine started in 2022, a trend that

has only accelerated since announcements of European rearmament

plans. But the beneficial economic impact of the European

defence supercycle may be heavily dependent on how it's

financed, argues Panmure Liberum investment strategist Joachim

Klement.

White smoke or London fog?

U.S. and Chinese officials resumed trade talks for a second

day in London on Tuesday, hoping to secure a breakthrough over

export controls on rare earths and other issues threatening to

widen the rupture between the world's two biggest economies.

The two delegations, led on the U.S. side by Treasury

Secretary Scott Bessent, Commerce Secretary Howard Lutnick and

Trade Representative Jamieson Greer opposite a Chinese

contingent helmed by Vice Premier He Lifeng, are meeting at the

ornate Lancaster House in the British capital.

The talks ran for almost seven hours on Monday and are set

to resume on Tuesday, with both sides expected to issue updates.

Lutnick said the talks would continue all day.

U.S. President Donald Trump said the talks were difficult

but going well: "We're doing well with China. China's not easy."

White House economic adviser Kevin Hassett on Monday said

the U.S. was likely to agree to lift export controls on some

semiconductors in return for China speeding up the delivery of

rare earths.

Wall Street stocks were little changed on Monday,

with a marginal outperformance for the tech sector.

Treasuries were in better form, with yields on long-term

maturities ebbing in a week of heavy new debt sales. Those start

with a $58 billion auction of 3-year notes later on Tuesday,

followed by sales of 10- and 30-year tenors on Wednesday and

Thursday.

The U.S. May consumer price report tomorrow will barrel into

the middle of everything.

On that score, the New York Federal Reserve's monthly household

survey for May showed Americans' anxiety about the future path

of inflation easing last month.

That tallies with a broader investor take on the tariff

crunch. Many seem to feel that the worst fears are being scaled

back as bilateral deals get thrashed out and business sentiment

appears to calm.

However, the resilience likely hinges on further détente in

the trade war. And that's why this week's London talks are so

important, especially given that Trump's 90-day pause on wider

'reciprocal' tariffs ends early next month.

On the currency front, sterling weakened as Bank of

England easing bets rose following the release of the latest UK

labor data. Pay growth in Britain slowed sharply, and

unemployment rose to its highest in nearly four years in the

three months to April.

Elsewhere, European and Chinese stocks

were more downbeat and lower on the day. Japan's Nikkei

bucked that trend and pushed higher due to reduced fears about

the domestic bond market.

European indexes were weighed down partly by a reversal of

recent gains for Swiss banking giant UBS. The stock

retreated as much as 7% as Swiss markets reopened after a long

weekend and investors reacted to government proposals that would

require the bank to hold an additional $26 billion in capital.

Vaccine makers such as AstraZeneca ( AZN ) and Sanofi

pushed higher, brushing off news that U.S. Health Secretary

Robert Kennedy fired all 17 members of a Centers for Disease

Control and Prevention panel of vaccine experts.

Be sure to check out today's column, which looks at why a

turbulent year so far for markets is being perceived more

positively as half-time in 2025 approaches.

Chart of the day

While sentiment survey readings should be taken with a grain of

salt, it is still notable that the New York Federal Reserve's

household survey for May showed Americans' anxiety about the

future path of inflation easing, with the outlook for inflation

ebbing across all time horizons. Five years from now, the public

expects inflation to be running at 2.6%, a sliver below April's

2.7% outlook, although still well above the Fed's 2% inflation

target. Market pricing shows five-year inflation 'breakevens'

from the inflation-protected Treasury market slightly lower at

about 2.35%, and the five-year inflation swaps market comes in

around 2.45%.

Today's events to watch

* U.S. May NFIB small business survey (6:00 AM EDT)

* U.S. Treasury auctions $58 billion of 3-year notes

* U.S. corporate earnings: JM Smucker

Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.