Major national stock indexes have recovered from a decline in April caused by tariffs imposed by U.S. President Donald Trump, Bloomberg reported.
The recovery comes after the U.S. and China agreed at talks in Geneva on May 10-11 to cut each other's tariffs for 90 days, during which the countries will continue negotiations to resolve differences in trade policy. Details of the agreement became known on Monday, and on Tuesday „dozens of stock indexes“ rose in response to this development.
In particular, the US S&P 500 index surpassed its level before the April decline by 3.1%. Stock exchanges in China, Canada and Hong Kong, which were most affected by the trade conflict between Washington and Beijing, recovered. At the same time, the main indices of Britain and France are one step away from a full recovery, the agency specifies.
“Long and careful negotiations lie ahead, but the market seems relieved that a catastrophe has not occurred“, Thomas Martin, manager of the investment company Globalt Investments, told the agency.