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Positive Market Reactions to US-China Trade Truce
2025-05-13 04:40:09
Business
China
Markets

Positive Market Reactions to US-China Trade Truce

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Asian markets experienced a notable rally as news of a temporary trade truce between the US and China spread. Investors welcomed the agreement to reduce tariffs, which aims to foster dialogue and ease trade tensions.

Major US stock indices surged in response, reflecting optimism for renewed trade relations. However, analysts caution that while this truce may offer temporary relief, the underlying issues remain unresolved.

Some market fluctuations, like those seen in Hong Kong, indicate profit-taking and lingering uncertainties about the future dynamics between the two economies. Despite the celebratory mood in the markets, the absence of a comprehensive solution raises questions about long-term stability and the potential for renewed conflicts.

As both nations navigate this delicate situation, the focus will shift to future negotiations and their implications for global trade.

Related news on that topic:

US-China Tariff Truce Sparks Market Optimism but Leaves ... Uncertainty

The announcement of a 90-day tariff truce between the United States and China has led to significant market optimism, boosting global stocks, the US dollar, and reducing safe-haven assets like gold. Under this temporary agreement, tariffs on Chinese goods to the US have been reduced from 145% to 30%, while tariffs on US goods to China have decreased from 125% to 10%. This development has been warmly received by financial markets, with Wall Street seeing significant gains, and tech stocks such as Apple and Tesla experiencing notable surges. While the truce offers a momentary sigh of relief, investors remain cautious about the prospects of a final trade deal. The agreement, although a step back from the escalating trade war, does not resolve underlying tensions. Analysts warn that the long-term impact on the global economy remains uncertain, with policy uncertainties likely to shift to other areas, such as tax cuts and debt levels in the US. Additionally, the pause in tariff hikes has influenced the Federal Reserve's stance, reducing immediate pressure to cut interest rates. With the economic risks temporarily eased, the central bank can afford to assess the situation further before making any moves. Despite the positive market reaction, the truce has not fully addressed structural trade issues. Both nations have committed to further negotiations, with hopes of preventing future economic decoupling. As talks continue, businesses and investors are urged to remain vigilant, as the unpredictable nature of US-China relations could still impact global trade dynamics.

US-China Tariff Pause Sparks Market Optimism

The recent announcement of a 90-day pause on tariffs between the United States and China has sparked significant optimism across global markets. Both nations agreed to drastically reduce their respective tariffs, with the US cutting duties on Chinese goods from 145% to 30% and China lowering its tariffs on US products from 125% to 10%. This easing of trade tensions has led to a surge in stock markets, with notable gains in indices like the S&P 500, Nasdaq, and Dow Jones. Financial experts and analysts have welcomed the temporary truce as a positive step toward de-escalating the trade war. However, they caution that the underlying issues in US-China trade relations remain unresolved. The pause has provided a boost to sectors such as technology and retail, with companies like Tesla, Nvidia, and Apple experiencing significant stock price increases. Despite the market relief, concerns about economic stability persist. Inflation risks and uncertainty about future trade negotiations could still impact growth. While the tariff pause offers a window for further dialogue, the long-term resolution of trade disagreements between the US and China remains a complex challenge.

Read 18 more recent news on this topic

The press radar on this topic:

The Street
30. Mai 2025 um 11:35

Markets reel on US, China landmark trade deal

The crypto markets surged following a landmark trade deal between the U.S. and China, with Bitcoin prices climbing from $72,877.39 on April 2 to $104,094.00. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer highlighted the swift agreement, addressing the U.S.'s $1.2 trillion trade deficit that led to the national emergency and tariffs imposed by President Trump. The new agreement is expected to help reduce this trade imbalance and promote macroeconomic stability, p..
The Street
13. Mai 2025 um 12:41

Stock Market Today: Stocks soar as the U.S. and China agree tariff pause TheStreet Daily Newsletter

The U.S. and China have agreed to a 90-day tariff truce, which will reopen billions in trade between the world's two largest economies. This news has led to a surge in U.S. stock futures, with the S&P 500, Dow Jones, and Nasdaq all set to open significantly higher. The deal will reduce tariffs to 10%, though some sector-specific tariffs will remain. The agreement is seen as a positive step towards de-escalating trade tensions between the U.S. and China, though some uncertainty remains.
Business - South China Morning Post
13. Mai 2025 um 02:19

Hong Kong stocks retreat from gains sparked by China-US trade breakthrough

Hong Kong stocks declined on Tuesday, with the Hang Seng Index falling 1.5% to 23,206.32, following a 3% gain the previous day spurred by a potential trade breakthrough between China and the US. The Hang Seng Tech Index dropped 2.6%, while major companies such as BYD Electronics and Alibaba Group saw significant losses. Traders took profits after the recent rally, and some economists warned that the trade de-escalation might lead to future tensions between the two economies. Nomura's chief China..
Yahoo News
13. Mai 2025 um 02:48

Most Asian markets extend rally in glow of China-US truce

Most Asian markets extended gains on Tuesday as investors reacted positively to the temporary trade truce between the US and China. The two countries agreed to slash most of their tariffs and hold talks to resolve the trade dispute. This news raised hopes for further deals and reduced concerns about a global trade war. However, some analysts warned that the impact of the tariffs has yet to fully materialize and future negotiations may not be smooth.
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