US, China Reach 90-Day Tariff Truce

Global financial markets surged after the US and China announced a 90-day agreement in Geneva to temporarily reduce tariffs, with US tariffs on most Chinese imports dropping from 145% to 30% and Chinese tariffs on US goods falling from 125% to 10%. Major U.S. indexes, including the Dow Jones, S&P 500, and Nasdaq, gained over 2%, fueled by tech and U.S.-listed Chinese stocks such as Nvidia, Amazon, Alibaba, and Baidu. European and UK markets also advanced, with industrial metal miners and luxury goods makers among top performers, while the VIX volatility index fell to a 45-day low. The positive news boosted the U.S. dollar and risk appetite, and cryptocurrencies like Bitcoin and Ethereum remained steady in anticipation of further gains. Some Gulf stock markets edged higher, though sector-specific factors led to mixed results in the region. Analysts emphasized that the tariff truce is only a temporary de-escalation, leaving the outlook for a permanent resolution uncertain.