The plan was reported on by the New York Times late on Wednesday. The deal comes a day after the stock index futures rebounded, as hopes of a de-escalation in trade tensions with Beijing firmed, while the Federal Reserve's ongoing monetary policy meeting remained in focus.

Washington announced late on Tuesday that representatives of the two countries would meet over the weekend in Switzerland forice-breaker trade discussions. The meetings will follow weeks of tit-for-tat tariffs that roiled financial markets and flagged concerns about global economic growth.

Mixed signals from the world's biggest economies on the status of the negotiations left markets in a state of uncertainty, pushing many companies to shelve their forecasts. The US central bank, meanwhile, adopted a wait-and-watch approach despite signs of slowing growth. Trump's administration said potential od similar deals with major trading partners are underway, but markets are yet to see tangible results on that front.

---Reuters---