Financial markets enthusiastically welcomed the announcement of a 90-day tariff truce between the United States and China, a sign of possible calm in a trade conflict that has been threatening the global economy for months. Nonetheless, investors remain on their guard, aware that this lull does not guarantee a definitive agreement.
A welcome but temporary truce
After two days of talks in Geneva, U.S. and Chinese negotiators agreed on a partial freeze on tariffs : the U.S. reduced surtaxes on Chinese imports to 30% (down from 145%), while China reduced its surtaxes to 10% (down from 125%). This decision, well beyond analysts’ initial expectations, gave a boost to world markets.
In Europe, the CAC 40 opened slightly down on Tuesday morning (-0.12%), having benefited from the previous day’s optimism. Caution remains the order of the day on the Old Continent, especially as the publication of the April US inflation index is eagerly awaited.
But, despite this surge of hope, uncertainty persists. Market players know that this truce is only a respite, and that fundamental differences remain.
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