US and China Slash Tariffs, Boosting Global Markets and Stocks

Global Market Rally on Tariff Reduction

• 📈 Wall Street stock futures surged, with the S&P 500 up 2.6% and Nasdaq 100 up 3.8%, following a joint US-China pledge to slash reciprocal tariffs.
• 🌎 Trade war fears were temporarily removed from global markets after weekend talks in Geneva resulted in a joint statement to drop trade levies.
• 💰 The US dollar rallied, while safe-haven asset gold dropped 3%.

European Markets and Sector Performance

• 🇩🇪 German stocks rose 1.5% to a record high, and the regional STOXX 600 also saw gains.
• 💡 Sectors benefiting from the tariff reduction included semiconductors (like Infineon), the automotive industry, and chemicals (notably BASF).

Trade Deal Details and Geopolitical Easing

• 🤝 US Treasury Secretary Scott Bessant announced a 90-day pause on measures, with tariffs to be reduced by over 100 percentage points to 10%.
• 🕊️ An easing in geopolitical tensions also contributed to the positive market mood, with a fragile ceasefire holding between India and Pakistan.
• 🇹🇷 Ukrainian President Volodymyr Zelenskyy expressed readiness to meet with Russian President Vladimir Putin in Turkey for talks.