US-China trade deal: Wall Street to Dalal Street — global markets rejoice amid fading Trump's trade war worries

US-China trade deal: Signs of a cooling trade war between the US and China, the world's two largest economies, boosted investor sentiments globally, sparking a rally in global markets. From Wall Street futures to European stock markets and Asian peers, all markets rejoiced globally. 

While Indian stocks jumped over 3%, US stock futures were trading 2% higher. Indices in Europe also rose 1.5%.

US-China Trade Deal Details

Chinese and US negotiators said “substantial progress” had been made on trade talks held in Switzerland, which involved pausing the tariffs and also lowering the earlier imposed massive tit-for-tat tariffs on each other.

Both countries arrived at an agreement to withdraw previously announced reciprocal tariffs and counter tariffs for an initial period of 90 days. Additionally, the US and China have also agreed to slash tariffs imposed on each other, wherein China will impose 10% tariffs on US goods, and the US will tax Chinese goods at about 30%.

The US President Donald Trump had hiked the tariff measures against China to 145%, which were met with retaliatory rates of 125%. Globally, investors have been on a rollercoaster ride since Trump unveiled massive tariffs on trading partners on April 2, with Beijing being the worst hit.

Global Markets Rejoice

However, signs of progress in the resolution of the trade war between the US and China, which had raised recession fears, lifted investor confidence, sending markets higher.

Asian markets jumped, with Hong Kong gaining 3% while Shanghai also enjoyed healthy buying, rising nearly 1%. Stock exchanges in Japan and Taiwan also recorded gains following the trade deal between the US and China.

Back home, the Indian stock market, which was already trading significantly higher amid a ceasefire with Pakistan, got a further leg up from the latest global development. Dalal Street's benchmark indices – Sensex and Nifty 50 – traded over 3% higher each. Sensex rose nearly 2,700 points or 3.39% to 82,150 levels while Nifty 50 gained 3.50% or 850 points to top 24,850 level.

The pan-European STOXX 600 index rose 1.1%, with all regional bourses trading higher, led by a 1.6% gain in Germany's benchmark DAX index which closed at an all-time high on Friday, according to a Reuters report.

Meanwhile, the Dow Jones futures traded at 42,028, up 1.82%, signalling a gap-up open for Wall Street in the evening today.

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