Brazil signed protocols with China on Tuesday to allow exports of an ethanol by-product used in animal feed, challenging U.S. dominance in the market amid the ongoing China-U.S. trade standoff.

Wall Street was on track to open with losses as the initial euphoria over the 90-day truce in the U.S.-China trade war faded.

Grocers’ sales are more reliant on domestically grown food. Supermarket operator Kroger, which previously disclosed “small single-digit exposure” to inventory from China, was down 4.7 per cent in early trading. Walmart, where the bulk of US sales come from groceries, was off by 0.8 per cent.

The new US-China trade truce has eased some of the pressure on global markets, but its impact on companies like Boeing highlights how disruptive the

Chinese Vice Premier He Lifeng, Beijing's lead person for trade talks with the US, said that both countries had reached a consensus in Geneva to de-escalate the 'damaging' tariff war, urging Washington to broaden the scope of cooperation between the two sides.

Treasury Secretary Scott Bessent reported "substantial progress," but offered no details of an agreement reached as two days of negotiations wrapped up in Geneva.