Global Markets Rally Following US-China Tariff Agreement
Wall Street and European indices rise sharply as trade tensions ease.
Markets globally experienced a significant boost following the announcement of a tariff reduction agreement between the United States and China.
Wall Street closed with notable gains, while European stock exchanges recorded substantial increases.
On the New York Stock Exchange, the technology-focused NASDAQ index surged by 4.35%, finishing at 18,708 points.
The S&P 500 index rose by 3.26%, closing at 5,844 points, while the Dow Jones Industrial Average increased by 2.81%, finishing at 42,410 points.
In Europe, major indices also reported strong performances, with Spain's IBEX 35 gaining 0.75%, reaching an annual high of 13,655 points, a level not seen since May 2008. The index gained 101.2 points during the session, and its year-to-date rise now stands at 17.77%.
Significant gains were noted among large stocks, with Repsol up by 3.2%, Inditex by 2.3%, BBVA by 1.79%, and Banco Santander by 1.68%.
Conversely, Iberdrola saw a decline of 1.78%, while Telefónica dropped by 1.32%.
Across other European exchanges, markets also closed in positive territory.
The Milan stock exchange saw an increase of 1.40%, while Paris followed closely with a gain of 1.37%.
London’s stock market rose by 0.59%, and Frankfurt recorded a modest increase of 0.29%.
The EUROSTOXX 50, which consists of the 50 largest companies in the euro area, gained 1.58%.
The market reaction was largely attributed to the agreement established between Washington and Beijing, which is set to last for 90 days.
Under the terms of the agreement, China will reduce tariffs on U.S. goods from 125% to 10%, while the United States will lower its tariffs from 145% to 30%, effective from May 14.
The U.S. dollar strengthened in the wake of the announcement, with the euro trading at 1.1094 dollars, down 1.4% from the previous Friday's close.
The euro fell to as low as 1.11 dollars, marking its lowest point in a month, driven by increased dollar purchases after the agreement.
Gold, traditionally viewed as a safe-haven asset during times of uncertainty, experienced a sharp decline, dropping more than 3% to $3,241 per ounce.
This decline coincided with reduced geopolitical tensions, particularly following a ceasefire between India and Pakistan, as well as upcoming discussions between Russia and Ukraine.
In the oil market, West Texas Intermediate (WTI) crude oil prices rose by 3.65%, reaching $63.25 per barrel, while Brent crude, the European benchmark, increased by 2.32% to €65.39 per barrel.
In the debt market, the yield on Spain's 10-year bond climbed to 3.26%, reflecting a half-point increase, with the risk premium over German bonds measuring 63.3 basis points.
Before European markets opened, Asian markets closed positively, led by Hong Kong's Hang Seng index, which gained 2.98%.
The Shanghai Composite increased by 0.82%, while Tokyo's Nikkei index rose by 0.38%.
Wall Street closed with notable gains, while European stock exchanges recorded substantial increases.
On the New York Stock Exchange, the technology-focused NASDAQ index surged by 4.35%, finishing at 18,708 points.
The S&P 500 index rose by 3.26%, closing at 5,844 points, while the Dow Jones Industrial Average increased by 2.81%, finishing at 42,410 points.
In Europe, major indices also reported strong performances, with Spain's IBEX 35 gaining 0.75%, reaching an annual high of 13,655 points, a level not seen since May 2008. The index gained 101.2 points during the session, and its year-to-date rise now stands at 17.77%.
Significant gains were noted among large stocks, with Repsol up by 3.2%, Inditex by 2.3%, BBVA by 1.79%, and Banco Santander by 1.68%.
Conversely, Iberdrola saw a decline of 1.78%, while Telefónica dropped by 1.32%.
Across other European exchanges, markets also closed in positive territory.
The Milan stock exchange saw an increase of 1.40%, while Paris followed closely with a gain of 1.37%.
London’s stock market rose by 0.59%, and Frankfurt recorded a modest increase of 0.29%.
The EUROSTOXX 50, which consists of the 50 largest companies in the euro area, gained 1.58%.
The market reaction was largely attributed to the agreement established between Washington and Beijing, which is set to last for 90 days.
Under the terms of the agreement, China will reduce tariffs on U.S. goods from 125% to 10%, while the United States will lower its tariffs from 145% to 30%, effective from May 14.
The U.S. dollar strengthened in the wake of the announcement, with the euro trading at 1.1094 dollars, down 1.4% from the previous Friday's close.
The euro fell to as low as 1.11 dollars, marking its lowest point in a month, driven by increased dollar purchases after the agreement.
Gold, traditionally viewed as a safe-haven asset during times of uncertainty, experienced a sharp decline, dropping more than 3% to $3,241 per ounce.
This decline coincided with reduced geopolitical tensions, particularly following a ceasefire between India and Pakistan, as well as upcoming discussions between Russia and Ukraine.
In the oil market, West Texas Intermediate (WTI) crude oil prices rose by 3.65%, reaching $63.25 per barrel, while Brent crude, the European benchmark, increased by 2.32% to €65.39 per barrel.
In the debt market, the yield on Spain's 10-year bond climbed to 3.26%, reflecting a half-point increase, with the risk premium over German bonds measuring 63.3 basis points.
Before European markets opened, Asian markets closed positively, led by Hong Kong's Hang Seng index, which gained 2.98%.
The Shanghai Composite increased by 0.82%, while Tokyo's Nikkei index rose by 0.38%.
Translation:
Translated by AI
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