The FTSE 100 index has surged by 6.2% as the London stock market reacts positively to Donald Trump’s decision to postpone US tariffs above 10% for 90 days for most countries, excluding China. This move has led to hopes of negotiation and compromise, easing global economic tensions. The market rally has lifted shares, including Barclays and Melrose, while mining stocks also climb. France’s CAC 40 and other European markets also strengthen following this news.
City experts believe that Trump blinked in the face of market turmoil, as the recent bond market slump prompted the 90-day tariff pause. Some traders are being accused of market manipulation for profiting from the situation. While the White House has refuted these claims, financial experts remain skeptical of Trump’s tactics.
The tariff reprieve has led to positive responses in Asian markets, with stocks rising and global markets also surging. However, concerns remain about the potential impact of the US-China trade war on global trade, with the head of the World Trade Organization warning of drastic cuts. Despite the push and pull between the two economic giants, other countries, including South Korea, Taiwan, and Vietnam, view the tariff pause as an opportunity for negotiations with the US.
China and the European Union have discussed strengthening economic and trade cooperation in response to US tariffs, indicating a potential shift in global trade dynamics. The market response to Trump’s tariff policies highlights the interconnected nature of the global economy and the influence of geopolitical decisions on financial markets.
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