Markets rally as Donald Trump hints at China climbdown

Importance Score: 35 / 100 🔵

The London stock market concluded the week positively, buoyed by signals from
US President Donald Trump suggesting a potential reduction in tariffs on Chinese
imports.

The FTSE 100 index increased by 0.3 percent, gaining 23.19 points to close at
8554.8, while the FTSE 250 rose by 0.2 percent, adding 47.22 points to reach
20,504.37. Simultaneously, the German Dax achieved a new record high in Frankfurt,
indicating broader market optimism.

This positive trend stemmed from the President’s indication that implementing an 80
percent tariff on goods entering the US from China “seems right.”

Trump’s trade disputes have resulted in the US imposing levies of 145 percent on
Chinese imports, prompting Beijing to retaliate with 125 percent taxes on American
products.

Boost: The FTSE 100 closed up 0.3 per cent, or 23.19 points, to 8554.8 and
the FTSE 250 gained 0.2 per cent, or 47.22 points, to 20,504.37

US Treasury Secretary Scott Bessent is scheduled to meet with Chinese counterparts in
Geneva today to discuss trade matters. In a post on his Truth Social platform, Trump
stated: “80 percent Tariff on China seems right! Up to Scott B.”

Market sentiment also received a boost from the recently agreed trade pact between
Britain and the US, marking the inaugural agreement of its kind since Trump’s
“Liberation Day” tariff implementations.

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