Kalkine: ASX 200 Edges Higher Amid US-China Trade Talks and Global Growth Revisions

Highlights

• Prolonged US-China trade negotiations contribute to upbeat sentiment across equity markets

• World Bank lowers global growth forecast amid rising tariff concerns and broader economic headwinds

• Meta reportedly collaborates with Scale AI to advance artificial intelligence infrastructure

Equity markets across global indices saw moderate gains, with the ASX 200 registering upward movement as US-China trade discussions extended into a second consecutive evening. The ongoing talks, taking place at Lancaster House in London, involve high-ranking officials including US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Commentary from US Commerce Secretary Howard Lutnick indicated that negotiations were proceeding constructively. These developments provided support to key Australian sectors such as industrials and materials, reflected in the S&P/ASX 200 and comparable regional benchmarks including the Nikkei and Hang Seng.

The trade discussions have focused on export control measures that have strained relations between the two major economies. Despite the complexity of the issues under review, both delegations have committed to further rounds of engagement, with attention now turning to the outcomes of these deliberations and any potential policy direction.

World Bank Revises Global Growth Projections

The World Bank revised its outlook for global economic expansion, citing an environment of persistent tariff escalations and growing uncertainty. A downward adjustment was made to the global growth forecast, affecting major economies such as the US, China, and regions across Europe. The financial institution noted that trade growth is slowing and that the long-term pace of economic activity may remain subdued.

In addition to moderating growth, inflation levels are expected to stay above previous norms. Structural challenges such as supply chain disruptions, elevated debt burdens, and tighter fiscal conditions are contributing to the recalibration of expectations. The bank highlighted that escalating trade tensions could undermine cross-border commerce and business confidence, even though systemic financial instability is not anticipated at this stage.

Meta Collaborates with Scale AI on Advanced AI Lab

Meta Platforms Inc. (NASDAQ:META) is reportedly in the process of finalising a significant collaboration with data-labeling firm Scale AI, with plans to establish an artificial intelligence-focused “superintelligence” lab. Meta is said to be pursuing a minority stake in Scale AI as part of this move. CEO Alexandr Wang, alongside several senior Scale team members, is expected to lead the initiative aimed at advancing AI research.

The initiative marks a strategic expansion of Meta’s technological capabilities and is seen as a response to ongoing competition in the generative AI space. Reports indicate that Meta’s internal efforts, including the development of its Llama 4 model, have prompted leadership to bring in external expertise to strengthen performance. The move aligns with broader industry efforts by major tech firms to scale up AI investments and infrastructure.

ABC Concludes Long-Running Current Affairs Program

Australia’s national broadcaster ABC has confirmed the discontinuation of its current affairs panel show Q+A, ending a run that spanned close to two decades. The show originally aired in May 2008 and most recently was hosted by Patricia Karvelas. The decision to halt production came after the program was placed on a temporary break earlier in the year.

The program’s conclusion marks the end of a format that featured diverse political and social debates. While no specific timeline has been confirmed for a farewell episode, the show will not return for its scheduled season. The announcement adds to a broader reshuffle across the Australian media landscape.

SEC Set for AI-Driven Reorganisation

The US Securities and Exchange Commission is preparing for a structural overhaul as the Department of Government Efficiency moves forward with plans to integrate artificial intelligence across regulatory functions. Leading AI developers including OpenAI, Anthropic, and Meta are expected to submit proposals. The reorganisation may influence staffing and operational workflows within the agency, which has already seen a wave of voluntary departures.

Elon Musk’s prior involvement in the establishment of the efficiency department under the current administration has drawn attention to the potential direction of regulatory innovation. Though Musk has since parted ways with the initiative, the broader AI integration process is set to proceed in the coming months.

UK Labour Market Faces Challenges

The UK economy is experiencing renewed labour market pressures, as the unemployment rate has risen. The increase coincides with new fiscal measures introduced by the Chancellor, impacting payroll dynamics in consumer-facing sectors such as retail and hospitality. Meanwhile, retail sales growth has moderated, suggesting cautious consumer behaviour.

A recent survey also indicated rising concerns among UK households regarding economic uncertainty and system outages, leading to increased cash withdrawals. These developments are being monitored by the Bank of England and may factor into upcoming monetary policy decisions.