Global Markets React to U.S.-China Trade Détente

Investor optimism over the recent U.S.-China trade détente has waned, with the U.S. dollar slipping against major currencies as markets await U.S. retail sales data and a speech by Fed Chair Powell. Safe-haven currencies like the Japanese yen and Swiss franc have strengthened, while the South Korean won and Taiwan dollar surged after regional trade discussions. U.S. equity markets remain strong, led by gains in tech stocks such as Nvidia and Super Micro Computer, partly attributed to deals in Saudi Arabia. Volatility in both currency and equity markets has eased, but concerns about tariffs' long-term impact and U.S. economic growth persist. The Australian dollar advanced for a second session, buoyed by improved global trade sentiment and robust domestic wage growth. Despite short-term market gains, uncertainty about Fed monetary policy and sustained dollar recovery remains.