Stocks, dollar surge after China and US agree 90-day tariff relief
Wall Street stocks leap after US and China reach deal to temporarily slash tariffs
03:53
China, US slash most tariffs on each other after first round of trade talks
Global shares rallied, while gold and safe-haven currencies slumped against a resurgent dollar on Monday as the US and China agreed to temporarily slash harsh “reciprocal” tariffs and cooperate to avoid rupturing the global economy.
Following weekend talks in Geneva, both sides agreed that the US would drop levies on Chinese imports from 145 per cent to 30 per cent during a 90-day negotiation period and China would cut duties from 125 per cent to 10 per cent.
Wall Street stocks made significant gains, with the S&P 500 index jumping 3.3 per cent and the tech-focused Nasdaq Composite advancing 4.4 per cent. The Dow Jones Industrial Average rose 1,160.72 points, or 2.81 per cent to 42,410.10 for its highest close since March 26.
In a joint statement on Monday, Washington and Beijing said they recognised the importance of their bilateral trade relationship to both countries and the global economy, in language that analysts said had brightened the market outlook.
An index tracking the dollar against other major currencies rose further from last month’s three-year trough with an almost 1.17 per cent gain, while Japan’s yen fell 2.1 per cent to 148.39 per dollar.
The retreat from safe-haven assets pushed Switzerland’s franc 1.8 per cent lower on the day, in a jolt of relief for Swiss exporters and the nation’s central bank.