While Donald Trump hailed the outcome of trade talks in London, Xi Jinping walked away with an understated strategic gain: a negotiating process that buys China time and helps defuse the threat of more harmful tariffs and technology curbs.

US stocks edged higher on Tuesday as renewed US-China trade talks entered their second day following an encouraging initial meeting. The Dow Jones Industrial Average closed up around 0.2%, while the S&P 500 rose about 0.

High-level delegations from the United States and China are meeting in London to try and shore up a fragile truce in a trade dispute that has roiled the global economy.

The US president has announced a rare earth supply deal with China, signaling a step forward in trade talks. The agreement also includes provisions for Chinese students in the US.

By Kate Holton, Andrea Shalal and Alistair Smout LONDON (Reuters) -U.S.-China trade talks were set to extend to a second day in London as top economic officials from the world's two largest economies sought to defuse a bitter dispute that has widened from tariffs to restrictions over rare earths,