Global markets showed signs of recovery on Monday as investor fears over an escalating US-China trade conflict eased following reassuring remarks from US President Donald Trump.
After threatening to impose 100% tariffs on Chinese imports next month, Trump appeared to soften his tone, suggesting that both nations could still reach a deal. Posting on Truth Social, he said, “Don’t worry about China, it will all be fine… The U.S.A. wants to help China, not hurt it!” The statement helped stabilize market sentiment after a volatile weekend.
The S&P 500 rose 1.1% and the Nasdaq Composite jumped 1.7%, while the FTSE 100 gained 0.2% before dipping slightly later in the session. Across Europe, the Dax and Ibex 35 advanced modestly, reflecting cautious optimism.
Cryptocurrencies also rebounded, with Bitcoin climbing back above $115,000 and Ether rising to around $4,100. Analysts pointed to the so-called “Taco trade” – shorthand for “Trump Always Chickens Out” – reflecting investor confidence that Trump may avoid extreme tariff actions.
Gold prices surged to a record $4,078.5 per ounce as investors continued seeking safety amid geopolitical uncertainty. Meanwhile, Chinese exports offered a bright spot, jumping 8.3% year-on-year in September, the strongest growth since March, suggesting resilience in China’s trade performance despite ongoing tensions.
