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.

Chinese stocks erased earlier gains before the second day of trade talks with the US, as investors awaited progress on some thorny issues between the world’s largest economies.

Trade talks between the US and China resumed on Tuesday after six hours of discussions between top officials in London on Monday. Tuesday's talks are expected to continue to focus on easing tensions over rare earths and tech.

The dollar slipped against all major currencies on Monday, as exuberance over a better than feared U.S. employment report gave way to caution ahead of pivotal U.S.-China trade talks set to take place in London later in the day.

Japan and the US have begun the latest round of trade negotiations, with media reports suggesting Tokyo’s delegation is trying to win a reprieve from the tariffs by pledging to make more cars in the US and enhancing cooperation on rare earths.