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Stock markets rally as Trump rows back on Fed and China threats
Global stock markets and the dollar have rallied on hopes of two significant climbdowns by the Trump administration on issues blamed for a slump in values.
Remarks by the US Treasury secretary on punitive tariffs against China lifted the mood on Wall Street initially before the president himself moved to calm market trade war worries and also end speculation he could fire the head of the country's central bank. The Dow Jones Industrial Average and tech-focused Nasdaq Composite both ended Tuesday trading 2.7% up, erasing losses of the previous day.
Money latest: Are Treasury-backed savings now the best place for your cash? Asian markets later followed that lead, with the Hang Seng in Hong Kong gaining 2.4%. European indices also saw a strong opening, with the FTSE 100 up by more than 1.2%.
It was led higher by Asia-focused banks HSBC and Standard Chartered. US futures suggested Wall Street would pick up where it left off, with further strong gains expected.
The US dollar - badly hit by trade war implications in recent weeks - was at least a cent higher than a day earlier against many rival currencies including the pound. The rally gathered steam on Tuesday evening when US Treasury secretary Scott Bessent told a private JPMorgan event that he expected a "de-escalation" in the spiralling spat with China.
It's a fight that has seen US tariffs hit 145% and China responding with duties of 125%. According to a transcript obtained by the Associated Press news agency, he told the audience: "Neither side thinks the status quo is sustainable.
Amir Nisi
Creative and experienced content writer with 6+ years of experience lazy to create unique content strategy for News5 to turn website visitors into customers.
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