Global markets were lifted after the US and China substantially reduced tariffs imposed as part of a trade war between the world’s two largest economies.
As part of an agreement hammered out in Geneva, the US will lower tariffs on Chinese goods to 30 per cent from 145 per cent and China will reduce duties on US imports to 10 per cent from 125 per cent.
Equities rallied on Monday, with futures for the S&P 500 and Nasdaq rising 2.4 per cent and 3.1 per cent respectively. Hong Kong’s Hang Seng index climbed 2.3 per cent while China’s CSI 300 rose 1.2 per cent.
The US dollar rose 0.7 per cent against a basket of its peers and the renminbi strengthened 0.4 per cent to Rmb7.21.
Gold sold off, with prices for bullion falling 2.3 per cent. The Swiss franc and Japanese yen, haven currencies, weakened 1.1 per cent and 1 per cent respectively.
Yields on US 10-year Treasuries rose 0.06 percentage points to 4.44 per cent. Bond yields move inversely to prices.
