U.S.-China Trade Truce Sparks Global Market Rally
The U.S. and China have agreed to delay and reduce tariffs, boosting global stocks and the U.S. dollar. The truce has led to a significant rise in Hong Kong's Hang Seng Index and U.S. markets. However, analysts warn of long-term risks due to economic tensions.
In a surprising turn of events, the U.S. and China have reached an agreement to delay and cut tariffs, prompting a significant rise in global stocks and the U.S. dollar. The agreement, finalized after weekend discussions in Geneva, has significantly surpassed market expectations.
The news, arriving just after mainland markets closed on Monday, resulted in a strong rally in Hong Kong, where the Hang Seng China Enterprises Index surged over 3%. Similarly, the benchmark Hang Seng Index also climbed, reaching a near six-week high.
This truce is expected to benefit key Chinese exporters, especially consumer electronics manufacturers, although it has led to a dip in gold prices. Analysts are cautious, emphasizing that this may be the beginning of broader, longer-term economic challenges between the two superpowers.
(With inputs from agencies.)
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