Stock markets experienced a relief rally following comments from the US Commerce Secretary, indicating a potential reconsideration of some tariffs by the Trump administration. This news has sparked optimism among traders, particularly in Hong Kong, where shares surged due to China’s economic growth target.

Several factors are contributing to the positive market sentiment:

• Expectations for further stimulus measures in China.
• Beijing’s annual work report.
• Indications of a potential tariff compromise with Canada and Mexico.
• Germany’s decision to increase defense spending.

As a result, both US and European equity-index futures have risen, bolstered by the President’s defense of his economic strategies. Additionally, a regional Asian index is showing signs of recovery. In contrast, Treasuries have continued their decline from Tuesday, while the dollar has strengthened against all Group-of-10 currencies.

📎 Related coverage from: bloomberg.com