Markets around the world rose yesterday after the US delayed an increase in tariffs on Chinese goods due on 1 March.
Donald Trump said the decision was a result of “substantial progress” in trade talks.
“I am pleased to report that the US has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues,” the US president tweeted.
He added: “As a result of these very productive talks, I will be delaying the US increase in tariffs now scheduled for March 1.
“Assuming both sides make additional progress, we will be planning a summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for US & China!”
The two nations reached the original truce at the G20 summit in Buenos Aires last year, with the US agreeing to pause plans to raise tariffs on $200bn (£150bn) worth of Chinese goods, including electronics and assorted foods.
Mr Trump had previously warned that he would escalate the tariffs from 10 to 25 per cent if the two sides failed to reach a deal.
Asian stocks surged to a five-month high after the truce was extended, and the Dow Jones rose to a three-month high when the US stocks opened. The FTSE was only slightly up in early trading.
Analysts noted that European markets had a more muted reaction, likely linked to ongoing uncertainty over Brexit.
“The European indices weren’t anywhere near as giddy (as the US and Asia), perhaps held back by the ongoing lack of clarity over what exactly is going to happen with Brexit,” said Connor Campbell, financial analyst at Spreadex.
