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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