U.S.-China Trade Truce Lights Up Global Markets
Global stock markets soared as the U.S. and China agreed to reduce tariffs for 90 days, easing trade war fears. The temporary deal aims to address underlying economic disputes, though both sides recognize the challenges of achieving a lasting resolution amidst deep-rooted trade imbalances.
Global stock markets experienced significant gains on Monday following an agreement between the U.S. and China to lower tariffs for the next 90 days. This temporary truce has settled immediate anxieties over a potential global recession prompted by the trade war between the world's two largest economies.
Investors welcomed the news, but businesses called for more clarity on future trading terms. As part of the agreement, steep tariffs on Chinese imports imposed by the U.S. last month will drop to 30%, while China will reduce its duties on U.S. imports to 10%.
The financial markets responded favorably with the S&P 500 and Nasdaq Composite reaching new highs. Despite the optimism, concerns linger regarding the long-term impacts of President Trump's trade strategy and ongoing negotiations between the two countries.
(With inputs from agencies.)
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