Global markets surged Monday after the United States and China announced a major reduction in reciprocal tariffs, easing fears of an extended trade war and fueling a broad-based risk rally. The breakthrough came after joint weekend talks in Geneva, where both sides pledged to cut tariffs imposed since the US hike introduced by President Donald Trump on April 2. The agreement includes a 90-day pause, with tariffs expected to fall by more than 100 percentage points to a baseline of 10 per cent, US Treasury Secretary Scott Bessent confirmed. * Wall Street futures surged, with the S&P 500 up 2.6 per cent and the Nasdaq 100 climbing 3.8 per cent, marking its best day in over a month. * Hong Kong tech stocks rose 6 per cent. * European stocks followed suit, with Germany's DAX hitting a record high, the STOXX 600 gaining 1.1 per cent, and Italy's FTSE MIB up 2 per cent. * USD strengthened by 0.9 per cent. * Yen dropped 1.5 per cent. * Chinese yuan strengthened, and factory-gate prices in China fell, signaling economic strain. * Gold prices dropped 3 per cent * Oil surged, with Brent crude rising 3.3 per cent and WTI up 3.5 per cent. * US 10-year Treasury yield hit a one-month high as safe-haven demand eased US Treasury Secretary Scott Bessent confirmed the agreement included a 90-day pause, with tariffs set to drop by more than 100 percentage points to 10 per cent. Analysts noted that while the pause may not yield a detailed agreement, it provides a window for negotiations. Geopolitical tensions also eased, with a ceasefire holding between India and Pakistan and Ukrainian President Zelenskiy offering to meet Russian President Putin for talks. Attribution: Reuters
