China and US Extend Trade Truce, Market Reacts Positively
After China and the United States announced on Monday (0811) that they would extend the 90-day tariff truce, Asian stocks rose, currencies remained mostly stable, easing market anxiety. The three major Wall Street indices surged sharply on Monday, with the S&P 500 index reaching its highest level since early March.
President Trump announced on his social media platform TruthSocial that he had signed an executive order to suspend higher tariffs before 00:01 Eastern Time on November 10 this year (12:01 Beijing Time), while all other contents of the tariff truce agreement remained unchanged.
On Tuesday morning, the Chinese Ministry of Commerce announced the suspension of additional tariffs, while also postponing the list of trade and investment restrictions against U.S. companies in April by 90 days.
The Japanese Nikkei Index (.N225), which has a high proportion of export stocks, closed sharply higher on Tuesday, setting a new high.
On Tuesday, the main European stock indices opened collectively higher. The pan-European Stoxx index (.STOXX) edged higher, as tariff concessions eased concerns in Europe about China's dumping of cheap goods to markets outside the U.S. to keep factories running.
Meanwhile, investors are also waiting for U.S. inflation data to further assess the impact of tariffs on price pressures and monetary policy paths.
According to Reuters, China's latest trade data showed that China's exports to the U.S. fell by 21.7% year-on-year in July this year.
China's total exports grew by 7.2% year-on-year in July, exceeding the consensus forecast of economists surveyed by Reuters, but China's producer price index (PPI) recorded the largest decline in two years, indicating that Chinese manufacturers are facing significant difficulties in domestic sales.
According to Reuters, another U.S. data released last week showed that the U.S. trade deficit with China in June 2025 dropped to a 21-year low.
Original: www.toutiao.com/article/1840302910807179/
Statement: This article represents the views of the author himself.