FTSE 100 Rises on US-China Trade Deal Hopes

The FTSE 100 and other major European indices surged, buoyed by hopes of easing tensions in the US-China trade war after President Trump signaled a willingness to negotiate, suggesting that tariffs on Chinese goods may be reduced from earlier threats. Trump's conciliatory tone and assurances that he has no intention of removing Federal Reserve Chair Jerome Powell helped calm investor fears about central bank independence, contributing to a global market rebound. China-exposed stocks, miners, and financial firms were among the top gainers as optimism spread that a recalibration of tariffs could benefit international trade and business sentiment. Market analysts noted that while no concrete decisions have been made, these developments have temporarily alleviated concerns over escalating trade barriers and monetary policy meddling. Meanwhile, some UK officials suggested that US tariffs and a weaker dollar could actually reduce inflation in Britain, as trade diversion and lower import prices may offset some of the inflationary pressures. Nevertheless, uncertainties remain regarding the long-term effects of trade policy changes and global economic growth.