Global Markets Rally Amid Trump's Tariff Pause

World markets surged as President Donald Trump announced a 90-day hold on tariff hikes, excluding China. The pause led to significant gains in European and Asian stocks but failed to calm fears of a recession. Analysts highlighted ongoing volatility due to unresolved US-China trade tensions.

In a dramatic turn of events, global markets rallied on Thursday after US President Donald Trump announced a temporary halt on new tariff hikes for 90 days, though excluding China from the reprieve. This strategic pause welcomed an influx of investor optimism, causing Japan's benchmark to leap over 9%, while Germany's DAX and France's CAC 40 experienced significant boosts in early trading.

Despite the relief, analysts like Francis Lun, CEO of Geo Securities, caution that the markets remain volatile, with Trump's unpredictability creating ongoing uncertainty. Such tension is fuelled further by the persistent US-China trade war, as steep tariffs between the two economic giants continue to pose a threat to global economic stability.

Amid this backdrop, the S&P 500 scored its third-best day since 1940, and other indices marked record highs, painting a picture of cautious optimism. However, experts warn that the battle is far from over, with the potential for further economic upheaval as future negotiations unfold.

(With inputs from agencies.)