Global Markets Rally After US-China Trade Deal

European markets are expected to open higher on Monday following the announcement of a 'trade deal' between the US and China. The UK's FTSE 100, Germany's DAX, France's CAC, and Italy's FTSE MIB are all projected to rise. The news has also impacted other markets, with US stock futures jumping and Asia-Pacific markets rising. Meanwhile, Bitcoin has fallen but remains above $100,000, and spot gold has plunged as investors react to the trade talks progress.

The US and China have reached a trade agreement, with reciprocal tariffs dropping from over 100% to 10% on both sides for 90 days. The deal is seen as 'better than expected' by market watchers, with global stocks rallying and US stock futures pointing to a rally. Analysts expect the agreement to reignite risk-on sentiment, benefiting stocks and US assets. However, uncertainty remains, and some analysts note that the 90-day period may not be sufficient for the two sides to reach a more concrete trade arrangement.

The US stock market surged on Monday after President Donald Trump's top trade officials brokered a dramatic de-escalation in trade tensions with China, dropping tariffs to much lower levels. The Dow closed higher by 1,161 points, or 2.81%, while the S&P 500 gained 3.26% and the Nasdaq Composite surged 4.35%. The agreement, which included a 115 percentage point reduction in tariffs, was seen as a positive surprise by economists and investors, and was expected to stave off a US recession. The de-escalation of US-China tariffs further reduces global recession risks and has led to a significant market surge, with tech stocks and luxury goods makers being particular winners.