MARKETS SOAR AS US-CHINA STRIKE 90-DAY TRADE TRUCE IN GENEVA TALKS
Global financial markets surged Monday after the United States and China declared a 90-day truce in their trade war following breakthrough negotiations in Geneva. Wall Street responded with a rally: the Dow and S&P 500 each rose over 2%, and the Nasdaq jumped more than 3%. Hong Kong’s Hang Seng Index gained 3%, while Paris and Frankfurt also saw significant boosts.
US President Donald Trump described the agreement as a “total reset” with China, noting he would soon speak directly with President Xi Jinping. The temporary deal sees the US scaling back tariffs to 30% from 145% and China lowering its own to 10%. US Treasury Secretary Scott Bessent said further talks would follow, aimed at a comprehensive resolution that could also address non-tariff barriers affecting American businesses.
China’s commerce ministry said the truce was in the mutual interest of both nations and the world. The move marks a significant shift from the hostile tariffs imposed by both sides since 2022, calming fears of a global recession and reducing expectations for imminent US Federal Reserve rate cuts.
