US-China Tariff Easing Boosts Market Sentiment

Market Overview

On Monday, markets rallied as the U.S. and China reached an agreement to reduce tariffs, easing recession fears surrounding the U.S. economy. The U.S. Dollar Index briefly approached the 102 level and ultimately closed up 1.37%. News of the trade deal weighed on safe-haven assets, with spot gold tumbling below $3,210/oz during intraday trading and closing 2.73% lower at $3,235.58/oz. Spot silver ended down 0.43% at $32.58/oz.

Oil prices surged as initial optimism over the trade talks drove gains of up to 3%, though OPECs production hike plans capped further upside. WTI crude rose 1.52% to $61.92/bbl, while Brent crude climbed 1.68% to settle at $64.95/bbl.

Hot Topics Ahead

● 91% of Tariffs Lifted on Both Sides; Additional 24% Tariffs Suspended

The latest high-level U.S.-China trade talks yielded substantial progress, resulting in a mutual rollback of 91% of previously imposed tariffs. In addition, the U.S. suspended implementation of an additional 24% retaliatory tariff, with China reciprocating in kind.

● Trade Dialogue Restores Global Confidence

The success of the latest bilateral dialogue underscores the importance of equal-footed communication in managing great power relations. Despite inherent differences in national conditions, the U.S. and China reaffirmed the need to respect each others core interests and concerns. The talks provided a framework to clarify priorities, address misunderstandings, and explore viable solutions through constructive engagement—ultimately injecting renewed confidence into global markets.

Key Data to Watch (GMT+8)

• 18:00 – U.S. NFIB Small Business Optimism Index (April)

• 20:30 – U.S. CPI YoY (April, not seasonally adjusted)

• 20:30 – U.S. CPI MoM (April, seasonally adjusted)