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US Department of Finance Secretary Scott Bensten (R) and US sales representative Jamison Greer hold a press conference in Geneva on May 12, 2025 to give details of “significant progress” after a two -day closed -door meeting between US and Chinese senior officials aimed at terminating the tariff war.
FABRICE COFFRINI | AFP | Ghetto images
Stoxx
Analysts and strategists said on Monday that the new US-China agreement could regain risky sentiment by taking advantage of US shares and assets.
In a note to customers on Monday Tai Hui, a major market strategist for the Asia -Tihoetan region in JPMorgan Asset Management, said the deal presented in Geneva was better than expected, but uncertainty remained.
“The magnitude of this reduction in tariffs is greater than expected,” he said, although he noted that it would be difficult for Beijing and Washington to reach a more common trade agreement in just three months.
“The 90 -day period may not be sufficient for both parties to reach a detailed agreement, but it retains pressure on the negotiation process,” Hu said. “We are still waiting for additional details under other conditions of this Agreement, for example, whether China will relax under export restrictions on rare earthly.”
However, Hui acknowledged the positive market response to the news.
“Overall, we expect the market to return to risky moods in the near future,” he said. “The pressure on (the federal reserve) to reduce tariffs can also be relieved for the moment.”
End of the story “Sell America”?
Jordan RoshstItR, head of the EMEA exchange strategy and CEO at Mizuho Bank in London, announced the deal as “much better news than expected” on Monday morning. He claims that development will mean “The Sale “Sell America” (gets) torn. “
American assets including dollar., Treasures and stockThey have seen a major instability During the weeks, since Trump revealed his full degree of tariff plans.
On Monday morning, Dollarswhich measures the value of green to the basket with basic currencies increased by 1%. The yield of the indicator The American 10-year note of the cashier It was up with 6 basic points as the price dropped a lower one.
According to Rochester, the 90-day deal takes an effective tariff rate in the United States-what Chinese companies will actually end-from 108.8% to 27%, which it noted is well above the market consensus to reduce to the range of 50% to 60%.
“It is also remarkable how (employees) have played the requirement for conversations to continue the past 90 days in the press conference with” As long as the conversations are constructive, “he said.” This means for international trade is the factual “tariff wall” is reduced to something more working and also raises the market prices of other countries, to reach such a sort, to reach such sides, to reach such a sides, to reach such a sides, to reach such a sides, to reach such a sides.
Better expected results from trade negotiations mean that shares can be combined further, according to Wall Street strategists.
“Although the shares have bounced, there is still a lot of dispersion (among) home and exporters under the hood, the premium of the dollar’s risk remains high and the overall positioning is light/defensive,” the email said. “Top pain in the upper part means that stocks have room to overcome.”
“Stay Bechi”
Meanwhile, Deutsche Bank strategists said their moods were significantly reinforced by The Morning’s News. They now expect the US shares to surpass their European rivals in the short term.
“Today’s message even exceeds our constructive expectations,” they said. “In our opinion, this message is not only better than we expected, but also better than the market would be expected in March.
“Although it is difficult to say how this will develop after the 90-day period, the consequences for the markets are clearly supporting … Stay scourge and consider returning to the sectors exposed to the tariffs in China (ex autos, healthcare and chips).”
Mickel Emil Jenson, a Sydbank senior analyst, said the 90-day tariff pause marks a major de-escalation in the US and China trade war.
“(This) removes much of the uncertainty associated with world trade – at least for now,” said Mikkel Emil Jenson, a senior analyst at Sydbank, before CNBC after the announcement of the news.
“The deal may be temporary, but the deal is better than expected and can ignite positive pulsation effects on global trade and increase the demand for container loads,” said Sydbank analyst. SUPPLIER HAPPERS GIGGES Maersk They were over 12% higher on Monday morning.
“Moreover, the temporary deal can enhance the effect of front charge, triggering companies to increase stocks before potential worsening of the trade war,” Jenson added.
“Dream scenario”
Also responding to the news, Dan Ives from Wedbush said he believes the deal in the US and China is “clear only the beginning of wider and comprehensive negotiations”, describing the news as “a huge victory for the market and bulls.”
“We would expect both tariff numbers to move significantly in the coming months, as the deal speaks of progress,” he said in a note. “The main view, aimed over the weekend, was a known US/China tariffs and the agreement for more conversations … Instead, in a dream scenario this morning (officials) came out of these conversations with massive cuts of reciprocal tariffs.”
Ives, which is known for its scourge prospects for technology, claims that the agreement means new maxima for markets and technology shares are “now on the table in 2025”.
The trade between the two largest economies in the world is expected to resume after the shortening of tariffs, turning Declining in cargo ships and shipping containers After the announcement of the tariffs in early April.
Lindsay James, an investment strategist in Quilter, said the new deal was “not as good as the level of 20%, existing before the so-called Liberation Day”, but added that the temporary agreement would allow “a significant part of the commercial resumption, albeit at slightly higher prices”.
– Sam Meredith from CNBC contributed to this report.