Markets rally as US-China tariff truce lifts global sentiment
Press Hub UCapital
Share:
The trade truce between the United States and China is giving a strong boost to financial markets. After Friday’s renewed optimism, European stocks opened higher this week, following the lead of Asian markets.
Over the weekend in Geneva, US Treasury Secretary Scott Bessent met with the Chinese delegation. The result: a partial suspension of tariffs for 90 days starting May 14. China will maintain a 10% tariff on US goods, lift 91% of current tariffs, and suspend another 24% for three months. Meanwhile, the US will reduce tariffs on Chinese goods by 115%, though a 30% rate will remain on some imports.
This agreement adds momentum to the positive mood already sparked by last week’s deal with the UK, boosting confidence across Europe.
Global sentiment is also supported by signs of easing geopolitical tensions: a US-brokered ceasefire between India and Pakistan, and scheduled Russia-Ukraine talks set for Thursday in Turkey.
The dollar is gaining strength as well — after the announcement, the euro dropped against the greenback. Oil prices continue to climb.
On the macroeconomic front, it’s a key week. Tuesday brings UK employment figures, followed by the most anticipated release: US inflation data. Inflation numbers from Germany, France, Spain, and Italy are also due. On Thursday, all eyes will be on US jobless claims and retail sales data.
Over the weekend in Geneva, US Treasury Secretary Scott Bessent met with the Chinese delegation. The result: a partial suspension of tariffs for 90 days starting May 14. China will maintain a 10% tariff on US goods, lift 91% of current tariffs, and suspend another 24% for three months. Meanwhile, the US will reduce tariffs on Chinese goods by 115%, though a 30% rate will remain on some imports.
This agreement adds momentum to the positive mood already sparked by last week’s deal with the UK, boosting confidence across Europe.
Global sentiment is also supported by signs of easing geopolitical tensions: a US-brokered ceasefire between India and Pakistan, and scheduled Russia-Ukraine talks set for Thursday in Turkey.
The dollar is gaining strength as well — after the announcement, the euro dropped against the greenback. Oil prices continue to climb.
On the macroeconomic front, it’s a key week. Tuesday brings UK employment figures, followed by the most anticipated release: US inflation data. Inflation numbers from Germany, France, Spain, and Italy are also due. On Thursday, all eyes will be on US jobless claims and retail sales data.