Significant Recovery of the Stock Markets Due to Tariff Reductions
The agreement in the trade dispute between the USA and China has led to a significant rally on the New York stock exchanges, which is of great interest to European investors as well. The two largest economies in the world have decided to partially suspend their mutual tariffs for an initial period of 90 days. Specifically, US tariffs on Chinese imports will drop from up to 145 percent to 30 percent, while Chinese tariffs on US goods will be reduced from 125 percent to 10 percent.
Important Step Towards Trade Relaxation
This measure was agreed upon after intensive negotiations in Geneva and is considered an important step towards easing the trade conflict. Both sides also plan to establish a mechanism for further discussions on economic and trade issues. The stock markets reacted with relief: for example, the share price of large companies such as the Danish shipping giant Maersk rose by about 10 percent in early trading.
Positive Effects on European Markets
This development is particularly relevant for European investors, as European markets also showed positive trends: the German benchmark index DAX reached new record highs as a result of the tariff reductions and continued its upward trajectory. The European Union also welcomed the agreement as a positive signal for global trade.
In summary, it can be said that the temporary reduction of tariffs between the USA and China has led to a noticeable easing in the global trade dispute, which has directly resulted in a positive market development on the New York stock exchanges and thus opened up opportunities for European investors.