Global stocks, dollar surge after US, China agree on tariff pause
Stocks and the dollar saw a boost on Monday following news that the United States and China had reached an agreement to pause tariffs for 90 days, with reciprocal duties set to drop significantly.
This development provided investors with renewed hope that a full-blown trade war might be avoided, News.Az reports, citing Reuters.
U.S. Treasury Secretary Scott Bessent, speaking after talks with Chinese officials in Geneva, told reporters the two sides had reached the deal that was outlined in a joint statement and that reciprocal rates would drop by 115 percentage points.
This weekend's Geneva meetings were the first face-to-face interactions between senior U.S. and Chinese economic officials since U.S. President Donald Trump returned to power and launched a global tariff blitz, imposing particularly hefty duties on China.
Futures on the S&P 500 and Nasdaq jumped to trade up 2.8% and 3.6%, respectively, from gains of 1.5-2% previously, while in Europe, the STOXX 600 rose 1% in early trading.
The dollar extended gains, with the euro down 0.8% at $1.1164, having traded down 0.2% on the day earlier, while the yen weakened, leaving the U.S. currency up 1.1% at 146.945, from a 0.5% gain earlier.
Benchmark 10-year U.S. Treasury yields edged up 6 basis points on the day to 4.435%, having traded up 5 bps before the joint statement.
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