Global stocks rally after US, China pause tariff war

Global stock markets surged on Monday after the U.S. and China agreed to slash steep tariffs for at least 90 days, tapping the brakes on a trade war between the world's two biggest economies. Wall Street stocks finished solidly higher Monday, cheering an announcement that the United States and China sharply de-escalated a trade war that has rattled global markets.
Major indices traded within a tight range in a buoyant session after US President Donald Trump touted a "total reset" of relations with China that included a steep drop in levies between the countries. The Dow Jones Industrial Average jumped 2.8 percent to close at 42,410.10. The broad-based S&P 500 rallied 3.3 percent to 5,844.19, while the tech-rich Nasdaq Composite Index rocketed 4.4 percent to 18,708.34.
The Australian sharemarket jumped in early trade, following a rally on Wall Street after China and the United States announced a 90-day truce in their trade war and agreed to temporarily reduce tariffs on each other’s goods.
The value of the US dollar strengthened against everything from the euro to the Japanese yen to the Swiss franc. And Treasury yields jumped on expectations that the Federal Reserve won’t have to cut interest rates as deeply this year as earlier expected to protect the US economy from the damage of tariffs