Financial markets surge globally as Trump softens trade approach: Shares, US dollar, and bonds climb following White House's ease in trade policies and Fed's stance.

Markets bounced back yesterday following a retreat by Trump on his attacks against China and the Federal Reserve chair, Jerome Powell. The FTSE 100 in London surged 0.9%, while Germany's Dax and the CAC 40 in Paris gained 3.1% and 2.1% respectively. Wall Street followed suit, with the S&P 500, Dow Jones, and Nasdaq rising by 1.7%, 1.1%, and 2.5% respectively.

The dollar, which had been dwindling at three-year lows due to fears of the US economy due to Trump's trade war, saw a slight recovery, up around 0.2%. US government borrowing costs eased as bond yields, which had surged during the turmoil, fell. Gold, a safe-haven asset that had rallied during the uncertainty, dipped by 2.6% after hitting an all-time high above $3,500 per ounce earlier in the week.

The reprieve came after Trump's plans to slam drastic tariffs on trading partners sent markets reeling. Investors breathed a sigh of relief when Trump agreed to a 90-day pause for most countries, but the escalating trade war between the White House and Beijing continued to cause stress. The US imposed a 145% duty on Chinese goods, prompting a 125% levy by China on American imports. Trump's threats to sack Powell, the Federal Reserve chair, further spooked markets.

However, optimism began to creep in on Tuesday when US Treasury Secretary Scott Bessent announced a 'de-escalation' in the trade war. Yesterday, Bessent offered additional comfort, stating, "America First does not mean America alone." He emphasized that there exists an opportunity for a significant deal between the US and China on tensions. Trump himself claimed, "I have no intention of firing Powell."

Some of the US stock market's heavyweight stocks soared yesterday, with Nvidia up 3.9%, Apple adding 2.4%, and Amazon climbing 4.3%. Tesla saw a jump of 5.4% despite a dismal report showing profits plummeted 71% in the first quarter. The boost came after Tesla's CEO, Elon Musk, indicated he would dedicate less time to his advisory role with Trump and more to leading the electric car manufacturer.

Alicia Garcia Herrero, the chief Asia Pacific economist at Natixis, expressed, "Trump is panicking due to markets plummeting and still high US Treasury yields. He needs a deal and quick. China does not need to offer anything big in such circumstances." Russ Mould, the investment director at AJ Bell, noted, "These comments have given markets a sense of optimism that recent chaos might have peaked and we're heading towards calmer waters."

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Global markets rally after Trump retreat: Stocks, dollar, and bond yields rebound

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The reprieve in the global markets came after US Treasury Secretary Stephen Mnuchin announced a 'de-escalation' in the trade war, with Donald Trump expressing no intention of firing Federal Reserve chair, Jerome Powell.
Stocks leapt in the markets yesterday as optimism began to creep in following the news of de-escalation of trade war and Trump's claims of no intention to fire Powell, with some of US stock market's heavyweight stocks like Nvidia, Apple, Amazon, and Tesla seeing notable surges.
The FTSE 100 in London, Germany's Dax, and the CAC 40 in Paris gained significantly as markets bounced back, following a retreat by Donald Trump on his attacks against China and the Federal Reserve chair, Jerome Powell.
In the realm of finance and technology, this sudden leap in stocks due to the optimistic news highlights the interconnectedness of investing in various business sectors, from automobiles to technology companies like Tesla.
Amidst the fluctuating markets and trade tensions, economists such as Alicia Garcia Herrero and Russ Mould have emphasized the importance of these positive developments, suggesting that uncertainty might be giving way to calm.

Major stock indices across Europe experienced significant gains overnight: London's FTSE 100 increased by 0.9%, Frankfurt's DAX surged by 3.1%, and Paris' CAC 40 soared by 2.1%.

Stock market indices surged last night: FTSE 100 in London rose 0.9%, DAX in Germany increased 3.1%, and CAC 40 in Paris ascended 2.1%.

Stocks soared last night, with London's FTSE 100 index surging 0.9%, followed by a 3.1% increase for Germany's Dax and a 2.1% boost for Paris's CAC 40.

Financial markets surge globally as Trump softens trade approach: Shares, US dollar, and bonds climb following White House's ease in trade policies and Fed's stance.