US-China Trade Truce Extended, Easing Global Market Jitters

Global markets showed cautious optimism following the extension of the U.S.–China tariff truce to November, announced by President Donald Trump, which eased fears of escalating trade tensions and their impact on economic growth. Canadian markets responded positively with futures on the TSX Composite Index rising due to firmer commodity prices, particularly in energy and mining, sectors deeply tied to trade and global demand. Similarly, European blue-chip stocks rose modestly, especially those with exposure to China, as tariff rates were held steady, providing relief yet tempered by anticipation of a broader trade deal. In the U.S., stock index futures climbed after inflation data aligned closely with expectations, reinforcing bets on a Federal Reserve rate cut in September. Oil prices also increased on hopes that the tariff truce would sustain demand for fuel from the two largest consumers, while markets awaited further developments including an upcoming meeting between Presidents Trump and Putin on Ukraine. Overall, the tariff truce extension has contributed to a more positive market sentiment, although investors remain watchful of inflation trends and geopolitical risks.