Global stocks steady as US-China truce optimism fades
Beijing/Washington DC: Global stock markets posted modest gains on Tuesday as initial enthusiasm over the 90-day trade truce between the United States and China began to cool. While the deal sparked a rally on Monday, concerns remain about its long-term impact and President Donald Trump’s shifting trade policies. The S&P 500 futures slipped 0.4% and the Dow Jones Industrial Average futures dipped 0.2% after Monday’s surge. The agreement, reached after talks in Geneva, involves the US reducing tariffs on Chinese goods from 145% to 30%, while China will cut its tariffs from 125% to 10%. Analysts say the move offers breathing space for further negotiations.
Stephen Innes of SPI Asset Management called the diplomacy “stage-managed” but noted it signaled Washington’s recognition of tariff-related economic pressures. European markets were mildly positive: Germany’s DAX rose 0.1%, France’s CAC 40 gained 0.2%, and the UK’s FTSE 100 edged up slightly. In Asia, Japan’s Nikkei 225 climbed 1.4%, driven by a stronger US dollar. South Korea’s Kospi was flat, while Hong Kong’s Hang Seng dropped 1.9%. India’s Sensex fell 1.5%.
Oil prices slightly declined after Monday’s rally. US crude dropped to $61.80 per barrel, and Brent crude fell to $64.78. The US dollar showed mixed performance, weakening against the yen but strengthening against the euro. Upcoming US inflation and consumer sentiment data could further influence market direction in the days ahead.