A temporary ceasefire in the U.S.-China trade war boosted global stocks to their highest in about three weeks on Monday, while sending the dollar lower and the Chinese yuan and several trade-dependent currencies higher.
The rally in equities follows an agreement reached between Washington and Beijing at the G20 summit in Argentina on Saturday that calls for a 90-day trade tariff truce.
“Most of us were hoping that we would come out of these discussions with no new tariffs and a pause, which is ultimately what we got,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
Reuters said the Dow Jones Industrial Average. DJI rose 225.51 points, or 0.88 percent, to 25,763.97, the S&P 500. SPX gained 19.73 points, or 0.71 percent, to 2,779.9 and the Nasdaq Composite. IXIC added 87.31 points, or 1.19 percent, to 7,417.85.
The pan-European STOXX 600 index rose 0.98 percent.
U.S. President Donald Trump said China has agreed to “reduce and remove” tariffs below the 40 percent level that is currently being charged on U.S.-made vehicles. That helped boost shares of European automakers more than 3 percent .SXAP.
The White House also said that the existing 10 percent tariffs on $200 billion worth of Chinese goods would be increased to 25 percent if no deal was reached within 90 days.
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