A Shaky Trade Truce Sends Ripples Through Global Markets

Global markets reacted with cautious optimism following a 90-day pause in the US-China trade war, with Chinese markets seeing gains and US indices showing mixed results. Despite concerns about future tariff impacts, investors took solace in an unexpected slowdown in US inflation, affecting various global indices and commodity prices.

Global markets showed cautious optimism on Wednesday as tensions eased with a temporary truce in the US-China trade conflict. The agreement has instilled a 90-day pause, boosting Chinese markets while leaving European indices slightly down.

In early trading, France's CAC 40 slipped 0.5% and Germany's DAX nudged down 0.1%. In the UK, the FTSE 100 saw a minor 0.1% drop. Meanwhile, US futures pointed to modest gains, with the Dow and S&P 500 indexes experiencing slight increases.

Asian markets benefited from renewed investor confidence. Hong Kong's Hang Seng surged 2.3%, and China's Shanghai Composite added 0.9%. Tech giants like Tencent, Baidu, and Alibaba experienced significant gains. Despite the upbeat sentiment, skepticism remains over the durability of the truce amid economic uncertainties.

(With inputs from agencies.)