Global stock markets surge as U.S. and China reach 90-day trade truce
Global News
Big gains for Wall Street, along with other global stock markets including the TSX today on news the Trump administration is pausing tariffs with China ahead of a new trade deal.
Stocks are surging on Wall Street after China and the United States announced a 90-day truce in their trade war.
They agreed to take down most of their tariffs that economists warned could start a recession and create shortages on U.S. store shelves.
The S&P 500 was 2.7 per cent higher in early trading Monday. The Dow Jones Industrial Average jumped 981 points, or 2.4 per cent, and the Nasdaq composite was 3.7 per cent higher.
Crude oil prices jumped because a global economy less weakened by tariffs would be hungrier for fuel. The value of the dollar climbed against other currencies and Treasury yields rose.
The Toronto Stock Exchange also started the Monday trading day on positive ground gaining almost one per cent at the open, while the loonie dipped about a quarter of a cent compared to the stronger U.S. dollar.
A joint statement on Monday said that for a 90-day period, the U.S. will cut tariffs on Chinese goods to 30 per cent from as high as 145 per cent. China said its tariffs on U.S. goods will fall to 10 per cent from 125 per cent.
The agreement to allow time for more talks followed weekend negotiations in Geneva, Switzerland, that the U.S. side said had made “ substantial progress.”
Wall Street cheered the development with futures for the S&P 500 jumping 3.1 per cent, while futures for the Dow Jones Industrial Average rose 2.5 per cent. Futures for the Nasdaq, home to the biggest U.S. technology companies, soared 3.9 per cent.
