China Trade Deal
US-China Trade Deal: A Boost to Global Markets The recent US-China trade deal has sent shockwaves through global markets, with both countries agreeing to significantly reduce tariffs on each other's goods. Here's a breakdown of the deal and its implications: * Key Terms of the Deal * - *Tariff Reduction*: China will lower its tariffs on US goods to 10% from 125%, while the US will reduce its tariffs on Chinese goods to 30% from 145%. - *90-Day Pause*: Both countries have agreed to a 90-day pause on further tariff hikes, aiming to ease trade tensions. - *Consultation Mechanism*: The US and China will establish a consultation mechanism to discuss trade and economic issues, promoting further negotiations ¹ ² ³. * Market Reactions * The trade deal has boosted investor confidence, leading to: - *US Dollar Surge*: The US Dollar Index jumped over 1% to reach a one-month high, driven by improved risk sentiment and expectations of sustained economic growth. - *Stock Market Gains*: US f...