Stock markets around the world extended their gains on Tuesday, buoyed by the suspension of China-US tariffs, which raised hopes that the two global economic giants would step back from their trade war.
Equity markets, alongside oil and the dollar, rallied after China and the US announced plans to slash most of their hefty tariffs and hold talks to resolve the standoff that has sparked fears of a global recession.
This positive development sparked optimism that some of the punitive tariffs, imposed by former US President Donald Trump on April 2, could be reduced or even removed entirely. These levies had previously raised concerns about the stability of global trade.
After two days of negotiations in Geneva over the weekend, officials confirmed that the United States would lower its 145 percent duties on China to 30 percent for 90 days, while China would reduce its retaliatory tariffs from 125 percent to 10 percent.
US President Trump hailed the move as a total reset, while US Treasury Secretary Scott Bessent expressed hopes for further discussions in the coming weeks to secure a more comprehensive deal.