Markets soar as US-China tariff cuts spark trade hope.
U.S. Market
- S&P 500 futures rose by over 3%, indicating a strong market opening.
- Dow Jones Industrial Average futures increased by approximately 2%.Reuters+6Yahoo Finance+6Fortune+6
- Nasdaq futures also saw significant gains, reflecting optimism in the technology sector.
Investors responded positively to the tariff reduction, with expectations of improved trade relations between the world’s two largest economies. Bloomberg+4Reuters+4Morningstar+4
🇪🇺 European Markets
- The pan-European STOXX 600 index climbed by 0.9%.Reuters+2Reuters+2Morningstar+2
- Germany’s DAX rose by 1.1%, while France’s CAC 40 increased by 1.3%.Reuters
- Spain’s IBEX and the UK’s FTSE 100 saw gains of 0.7% and 0.5%, respectively.Reuters
The positive sentiment was particularly evident in sectors such as automotive and logistics, with companies like Adidas, Puma, Maersk, and Hapag-Lloyd experiencing notable stock price increases. Reuters
Asian Markets
- Asian stock markets also rallied, buoyed by the easing of trade tensions.IDN Financials
- Investors in the region welcomed the developments, anticipating improved export prospects and economic stability. 朝日新聞
Sector-Specific Movements
Pharmaceutical Stocks Decline
Shares of pharmaceutical companies declined globally after U.S. President Donald Trump announced plans to reduce prescription drug prices. Major firms such as Novo Nordisk, GSK, Roche, Sanofi, and AstraZeneca experienced stock price drops, with Novo Nordisk notably affected due to competitive pressures from new entrants in the weight-loss drug market. Reuters+2Yahoo Finance+2Reuters+2Reuters
Commodities and Currency Markets
- Oil prices saw an uptick, with U.S. benchmark crude oil gaining $1.66 to reach $62.68 per barrel, and Brent crude rising by $1.63 to $65.55 per barrel.Michigan’s Thumb+1Pittsburgh Post-Gazette+1
- The U.S. dollar strengthened against major currencies, trading at 148.18 Japanese yen, up from 146.17 yen, while the euro fell to $1.1107 from $1.1209. Michigan’s Thumb
Investor Outlook
While the market response to the U.S.-China tariff reduction has been overwhelmingly positive, analysts caution that the 90-day pause is temporary. Ongoing negotiations will be crucial in determining the long-term impact on global trade and economic stability.AInvest+6Reuters+6ABC+6
