Prime Business AfricaGlobal shares soared and bond markets stabilised after U.S. President, Donald Trump, announced a surprise 90-day pause on new tariffs imposed on dozens of countries.
This move sparked a relief rally, with major stock indexes surging worldwide. The S&P 500 jumped 9.5% on Wednesday, its largest gain since 2008, while the Nasdaq rose 12.2%, its biggest one-day increase since January 3, 2001. European shares followed suit on Thursday, with the pan-continental STOXX 600 index up 5.3%, on track for its largest one-day gain since March 2020.
Join our WhatsApp ChannelIn Asia, Japan’s Nikkei advanced over 8%, and a broader gauge of Asia-Pacific stocks excluding Japan rose 4.4%.
Currency and bond markets also recorded significant shifts. The dollar weakened around 0.9% against the yen and Swiss franc, failing to sustain its previous jump.
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The benchmark 10-year Treasury yield dropped 10 basis points to 4.2985%, easing fears of fragility in the world’s biggest bond market.
German Bunds, previously a safe haven, sold off on Thursday, with the 10-year yield up 8 basis points at 2.659%.
Commodities and Expert Insights
Oil prices fell as investors worried about the continued growth shock from the worsening Sino-US trade war. Brent crude futures were down 2.3% at $63.97 per barrel. Spot gold extended its climb, up 0.9% at $3,109 an ounce.
Experts attributed the market surge to relief and uncertainty about the longer-term plan for tariffs. “You’ve had a relief rally after the realisation that market pressure is something that resonates with the US president,” said George Lagarias, chief economist at Forvis Mazars.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
