Global investors are cheering a thaw in the trade war sparked by US President Donald Trump’s massive tariffs, which have roiled financial markets, disrupted supply chains and stoked recession fears.
Stock markets around the world rose Monday after the United States and China agreed to drastically roll back tariffs on each other’s goods for an initial 90-day period.
Hong Kong’s Hang Seng index was up 3.4% late afternoon local time.
In Europe, Germany’s DAX index and France’s CAC were 1.2% and 1% up respectively early in the trading session. London’s FTSE index rose 0.3%.
US futures were also up. The Dow was set to open 2.1% higher, while futures in the S&P 500 and tech-heavy Nasdaq were trading 2.7% and 3.6% higher respectively.
The US dollar strengthened early Monday following the breakthrough in trade talks. The ICE dollar index, which measures the greenback’s strength against a basket of major currencies, rose 1.3% to $102.
Brent crude, the global oil benchmark, was trading 2.8% higher.
“This is buying time for a more comprehensive deal – allows for time for the process and ‘mechanism’ in the words of Treasury Secretary Bessent to take place,” Neil Wilson, a strategist at investment platform Saxo Markets, wrote in a note Monday.
